Children's Regular Savings

ejv

Could someone shed some light on this as I haven't tried them before.:o
How many accounts can a couple open for their 2 kids?
Are those tax free?
Thanx in advance:)

innovate

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

ejv

Thanx innovate.
I'd read that guide, but was still bit confused.
I was interested in the 6% Halifax £100 per month 1 year regular saver.
Can each parent start one for each child? Are there any restrictions in the number of accounts opened as long as the total interest in an year doesn't exceed £100?
Can the parent close/transfer etc at the end of the year?

innovate

You'd need to ask Halifax whether they allow more than one per child. Assuming they will allow you to do this, the max you could save is £2.4K/year, which yields £77.31 in interest @ 6% AER (assuming tax exemption).

That would still be well within the allowance of £100 interest per parent per year.

xylophone

But remember that it is £100 in total per child (over all non-tax privileged accounts for which a parent has provided the money) and that it is cumulative See http://bank.virginmoney.com/savings/learn/childrens-accounts/

ejv

Do parents have control on closing/transferring etc of these accounts?

franklally

ejv wrote: »

Do parents have control on closing/transferring etc of these accounts?

The parent has full control over the account

ejv

Thanx frankally
Then it seems to be a good option in this time of pathetic savings rates.:mad:
Do u know whether a couple with 2 kids can open a total of 4 accounts? That means saving £4800 a year tax free at 6%??:eek:

franklally

ejv wrote: »

Thanx frankally
Then it seems to be a good option in this time of pathetic savings rates.:mad:
Do u know whether a couple with 2 kids can open a total of 4 accounts? That means saving £4800 a year tax free at 6%??:eek:

No just one account for each child - how about opening a JISA with the Halifax ( although the money will be tied up until the child is 18 and one adult needs to have to have an ISA with them) which also pays 6%?

xylophone

how about opening a JISA

Only possible if the children are eligible (born before 1. 09. 02 or after 2.01.11)

ejv

franklally wrote: »

JISA with the Halifax ( although the money will be tied up until the child is 18 and one adult needs to have to have an ISA with them) which also pays 6%?

Thanx franklally.
Not eligible for JISA.
Then the lock till 18 and an adult maintaining an ISA with them:wall:
Too tough for me:o