Dont they want to "catch" young savers

Mike_J

My daughter has two accounts at the Halifax which she operates online. One is a savings account and the other is a "spends" (she put in her birthday money and then uses a cashpoint when she wants to buy something). The interest rate on these accounts is now 1/2%. This bank has a couple of instant access accounts (paying about 2%) but although she can open them from 11, she cant do them online until she is 16. Yesterday we went into the local branch to open at least one of these with a cash card only to be told the earliest date we could have an appointment is in 2 weeks time !!!!!!!

Anyways looking round for a couple of options for taking the money elsewhere but there isn't a lot for a conscientious young saver

Options please (for a 14 year old):-
Instant access account with a card option for her gifts/spends money. Able to open online (as its easier) but with a branch option

Then a fairly decent account for her savings (about £1000 which she says is for college which is in two years time so tie-up is OK)

xylophone

If you open an ISA with the Halifax she could have the JISA with relationship interest? http://www.halifax.co.uk/savings/interest-rates/personal-rates/#junior-cash-isa
have you looked at Lloyds TSB for spending account? http://www.money.co.uk/current-accounts/bank-accounts-for-teenagers.htm

Mike_J

JISA is no good. She needs access at 16 and she cant aces a JISA until 18. Liking the look of the Under 19 account. Just a shame she cant open it online. Just have to coordinate a visit to the bank with all her ID

xylophone

Would the "Little Rock" do for the savings?http://www.northernrock.co.uk/savings/find/savings-accounts/Little_Rock_Access_Account_Issue_2/

You might want to save for her in the JISA for university?

gt94sss2

Mike_J wrote: »

Options please (for a 14 year old):-
Instant access account with a card option for her gifts/spends money. Able to open online (as its easier) but with a branch option

Consider the HSBC MyMoney account for this - it allows online access and a debit card.

For some reason, most banks don't allow under 16's to have internet banking - HSBC is an exception.

However, I think you need to open it at a branch.

Regards
Sunil

Mike_J

Liking the ideas. Yep JISA for university is already on the agenda. This is her money for socialising at college hence the pre 18 access needed. Sunil, I know what you mean about bank not liking under 16s online banking. The stupid thing with the Halifax though is that she already has two accounts which she operates online, she just cant "convert" them into a decent paying interest

The_pc_tech

Most kids don't save these days which is probably why the product range is so limited.

Mike_J

The_pc_tech wrote: »

Most kids don't save these days which is probably why the product range is so limited.

Maybe more parents would be able to encourage them if the range wasnt so limited.......or if it was at least easy to open one!

The_pc_tech

Yes true Mike.

My grandparents opened a Natwest savings account for me when I was born (the one that came with the pigs) when then became First Reserve.

I only closed it last year to move what remain dosh was in there into an account with better interest.