Best Savings account for my 3 year old

mysti77

Hi,

I'm not sure where to begin. I just saw an advert on natwest for a First Saver account. I know interest rates are low but this is Tax free. Is it worth it or is there something better that anyone knows of?

http://personal.natwest.com/personal/savings/first-saver.html

Thanks

apt

Those interest rates are terrible. You can get 3% on children's accounts at Lloyds and Halifax. Halifax also offers 6% interest rate on a one year regular saver up to £100 per month.

jimjames

For long term savings for children you may want to look at investments to try to beat inflation. The ones below start from £25 and you can start and stop the monthly DD when you want so no lock in and no minimum terms on them - hugely flexible.

We use Aberdeen and F&C for our childrens savings plans but that was before CTFs or JISAs were available.

http://www.invtrusts.co.uk/aam.nsf/I...investchildren
http://www.fctr.co.uk/child-saving/s...tmentplan.html

You can also get S&S JISAs from the likes of hl.co.uk

Archi_Bald

mysti77 wrote: »

I know interest rates are low but this is Tax free.

Children's savings accounts, apart from JISAs, are only tax free if you claim the tax by completing an R85 formhttp://www.hmrc.gov.uk/forms/r85.pdf.