advice for childrens saver

cybershot_2

i want to put £1000 in to savings for my 6 year old any advice which is best?

jinkssick

£1,200 is the max in a year.

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1089574348,16470,#top

dancingfairy

Martin has an article on childrens savings accounts here:

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1089574348,16470,

It's updated monthly so should be fairly accurate, if you want the most up-to-date info follow the link in the article for a comparison site.

Also don't forget to check every so often you're still getting a good rate and if necessary change accounts.

Nationwide always seem to have a fairly good rate and although not at the top of the tables they do seem fairly consistent from what I've heard.

Hope that helps.

Woodyrocks

I went with a YBS kiddie saver for my DD and deposited a lump sum of £1500 in there and got a R85 (?) sorted automatically in the branch. The rate is 5.7%

debbie42

jinkssick wrote: »

£1,200 is the max in a year.

It isn't quite that easy, I don't think?

"If a child generates more than £100 interest in the course of the year from money specifically given by each parent, this income is taxed at that parents' tax rate. "

So it depends on the interest rate, but even if it's 6% then you'd still be allowed around £1600 each. Also, it isn't per annum, it's in total.

Gifts from grandparents etc. aren't subject to this restriction.