Grand-daughter savings

lainey612009

i am a pensioner and want to give my grandaughter some money for her birthdays she is thirteen and I want to open a bank account for her with her mother as trustee what bank account will give her the best grosss interest please all comments are valued:T

opinions4u

Easy access look at Lloyds TSB or Northern Rock.

Regular saving or Junior ISA look at Halifax who pay 6% with restrictions.

xylophone

http://www.hmrc.gov.uk/tdsi/children.htm Read this first.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/ISAsandJuniorISAs/DG_199672
http://www.halifax.co.uk/savings/interest-rates/personal-rates/#junior-cash-isa
http://www.halifax.co.uk/savings/accounts/branch-accounts/

Outside the JISA,your daughter could open any account that will accept a "re" account (bare trust ).
http://moneyfacts.co.uk/compare/savings/accounts/best-sellers-savings/

hardpressed

Have I got this right? If I was to open a Halifax cash Isa for myself with as little as £1, I can then open a Junior ISA for my grandaughter and get 6% interest instead of 3%. Is there any restriction on how long I have to be a Halifax customer before I can do that? Can't see it mentioned anywhere.

xylophone

See rules for Junior ISA http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/ISAsandJuniorISAs/DG_199672
Someone with

"parental responsibility" must open the account for an under 16.

This would be the "registered contact" in the Halifax rules.

http://www.halifax.co.uk/savings/accounts/branch-accounts/#juniorcashisa

With regard to the Halifax JISA, only the child gets the 6%not the registered contact.

hardpressed

So my son could open an ISA for himself with £1 then get the junior ISA for my grandaughter.