Cash Isa for Kids, Halifax 6% any good?

tower

Hi, I'm looking for somewhere to put my kids savings. At present they have Nationwide accounts paying 0.75%. Nationwide have suggested a fix term saving account offering 3.75% But they would be locked in till they are 18. (4 & 7 years).
Now looking around i see that Halifax are offering a Kids Isa paying 6% if the adult on the account has a Halifax Isa too.
Halifax is paying 2.6% on senior Isa's. Is it worth opening one to get the Kids a decent rate? or does anyone know any other deals. Thx

xylophone

If your children have/are eligible for CTF accounts they cannot have JISAs.
https://www.gov.uk/child-trust-funds/overview

This fixed term bond that Nationwide has offered - I don't see any on offer that would lock them in for this period!

If you are giving money to your children, see http://www.hmrc.gov.uk/tdsi/children.htm

The "£100 rule" does not apply to tax privileged savings like the CTF/JISA.

tower

Hi Thanks for the reply.
The money is all their own from birthday gifts and pocket money. The account offered by Nationwide was the Smart Junior ISA with no withdrawals until 18.
I've looked into the Halifax Isa and that is the same, no withdrawals until 18,but you get 6%. Does this sound any good? Thx

xylophone

Your children are of the age to have been eligible for CHILD TRUST FUNDS.

If so, they cannot have a JISA.

Read https://www.gov.uk/child-trust-funds/overview

With regard to the money's being "all their own" this is immaterial for tax purposes if a parent has provided the capital and interest arises on it in excess of £100. See the link http://www.hmrc.gov.uk/tdsi/children.htm

The £100 rule does not apply to money invested by a parent in ISA/CTF

It is therefore a good idea for parents either to use the CTF/ISA as appropriate or to make sure that interest arising on money gifts to their unmarried minor children does not exceed £100 per child per annum - the £100 limit is per parent.

See also http://www.moneysavingexpert.com/savings/child-savings-tax-free

tower

xylophone wrote: »

Your children are of the age to have been eligible for CHILD TRUST FUNDS.

If so, they cannot have a JISA.

Read https://www.gov.uk/child-trust-funds/overview

With regard to the money's being "all their own" this is immaterial for tax purposes if a parent has provided the capital and interest arises on it in excess of £100. See the link http://www.hmrc.gov.uk/tdsi/children.htm

The £100 rule does not apply to money invested by a parent in ISA/CTF

It is therefore a good idea for parents either to use the CTF/ISA as appropriate or to make sure that interest arising on money gifts to their unmarried minor children does not exceed £100 per child per annum - the £100 limit is per parent.

See also http://www.moneysavingexpert.com/savings/child-savings-tax-free

I think you have mis understood my kids are 14 and 11 so where born before this.

xylophone

I think you have mis understood my kids are 14 and 11 so where born before this.

Sorry - I thought that

(4 & 7 years).

was the age of the children!

In that case, provided that you are prepared to open (or already have) an ISA with the Halifax, the Halifax JISA might suit.

As I understand it, you need to make an appointment at a branch to set up the Halifax JISA. http://www.halifax.co.uk/savings/interest-rates/personal-rates/#junior-cash-isa
https://www.gov.uk/junior-individual-savings-accounts/overview