Best savings account for my child (please read)

tegan1110

Hi all,

Recently my 9 year old daughter was awarded £3400 in compensation for an accident she had back when she was 4 years old. The money will be held in trust by the court funds office until my daughter turns 18 years old and will earn 0.5% interest (although this COULD increase as we ease out of recession).

I was advised (by a member of counsel) that we can apply to the courts to transfer the money out of the account that they hold it in into one that will earn higher interest IF we can find such an account - The problem is that I don't really know much about accounts that are suitable for this purpose, but would like it very much if my daughter's compensation could grow more over the next 9 years than 0.5% per annum.

I would be grateful of any advice from the MSE-ers here, suggestions for suitable accounts, (I believe that they HAVE to be untouchable until my daughter is 18) and that hopefully have a much higher rate of interest than 0.5%pa)

(FYI: My daughter DOES have a child trust fund and the money COULD be placed in there, BUT since it was opened it certainly hasn't performed brilliantly. )

Thanks in advance!

xylophone

Maybe switch the existing CTF to the Furness (3.05%) and then add the compensation money? http://www.furnessbs.co.uk/saving-accounts/young-savers/child-trust-fund/

It may be possible to transfer the CTF to JISA in due course- more flexibility would then be available. http://www.ftadviser.com/2013/03/20/investments/savings-and-isas/more-joy-for-the-jisa-as-ctf-transfers-seem-possible-Kb9nv6fgm7bWNd35NiNj2K/article.html

Failing that 2% is available in Virgin child account which you could hold in bare trust http://bank.virginmoney.com/savings/learn/childrens-accounts/

tegan1110

Thanks for the info,

Just out of interest, I have just phoned our CTF holders to get up to date performance figures for both of my girls' accounts (we only get statements every year and seem to have mis-placed the last two years' statements).

The accounts have been earning around 11% (average) for the last two years; so I see no reason to change this! Just a little worried that they CAN go down as well as up.

Now to seriously consider applying to the courts to have the money transferred here!