An account for a sixteen year old

Emmy

I think I have found the acount for us (well two actually) the first one we open has an interest rate of 5.05% and we then drip that into an account that pays 6.25% .... looks like it suits our needs best

Thanks for all of the pointers..... it's a mine field!!!!!

Kilty_2

Where are those with?

I presume the 6.25% is a regular savings a/c? I have a spreadsheet I made at some point that tracks drip feeding showing the increase in interest compared with leaving it in one place, etc.

Emmy

Scarborough.....

Emmy

Sorry and yes it is a regular savers.... minimum of £10 max of £150

agal

Kilty wrote: »

I have four bank accounts instead of two for that exact reason

Snap! I have six! (three people obviously).
The Nationwide staff member who opened the last Flexaccount informed me that branch staff are able to "upgrade" cashcards to debit cards for 18 year olds without the bother of opening a new Flexaccount.
I actually find it quite useful to have "dual" Flexaccounts as I let the missis and the oldest son have the cashcards while the "serious" money transactions are occurring on the debit card accounts

Kilty wrote: »

Now if we could get a petition going amongst Nationwide members, suggesting they at least introduce Visa Electron if not 2 in 1 Visa Debit cards for under 18s, surely they'd need to respond, being a mutual society and such?

I'd certainly support that proposal

Kilty_2

agal wrote: »

Snap! I have six! (three people obviously)

Yeah but my four are all my own!

Emmy, it's good that they are both with the same institution then you don't lose interest to the BACS clearing cycle.

If you want this rough and ready spreadsheet that compares drip feeding a reg saver with a lump sum compared with leaving the lump sum in one account, PM me It's pretty bad though, there's probably better out there.

xdqm

Kilty wrote: »

States on the R85 form I have lying here that savings interest is tax deductable if the money is from parents and it accrues interest greater than £100 per year.

Hence it's still lying here

A NS&I Direct ISA would be ideal (deposit £1000 then the £300 after it's open) but your daughter would require a debit card (Visa Debit or Maestro) in her own name to open one. Lloyds TSB Under 19's Account will provide her with one if she doesn't.

You could add to that up to a total of £3000 per tax year .

Nationwide's E-Savings (attached to a FlexAccount - she'd need to open one to get it) would also be an option for any money over the ISA limit. One of the best rates available for people under 18. (believe me - I've researched thoroughly!)

won't a Barclays Tax Beater Cash ISA which pays 6.5% for the first 3000 quids, then thereafter LTSB under 19's current account + LTSB Monthly Saver pays 8% for the rest extra be better?

all of these only need the holder to be 16 or over.