Best savings account for a child

geordie_ben

How do you "gift" someone money? Would that stop some of the tax issues?

Mattygroves2

To avoid the tax inplications the gift has to:
- be to an adult
- be into a tax free wrapper in the child's name (Junior ISA or pension)
- be from someone other than a parent (ie grandparents)
- be into a family trust (but that then gets taxed on the trust)

If you want to keep control you're going to have to have accounts in your name anyway so it would be taxed on you anyway. Any bank accounts in her name would go to her at 18 at the latest.

The rules on interest to gifts to children are to stop parents giving large sums of money to utilise their children's tax allowances. The usual work round is to give the cash to a grandparent and then for them to gift to your daughter.

JISAs were created to allow gifts to be made into a non tax environment.

MallyGirl

we have a variety of solutions for our daughter but she is 12.

Halifax regular saver gives her 6%
Halifax instant saver givers her 3% but feeds into the regular saver each month.
Halifax Junior ISA gives her 6% and will get its next injection from the instant saver in a couple of days time as this year's allowance is
used up.
Aviva S&S ISA that I put the child benefit into - in my name but I know it is her money.
She knows nothing about these accounts

She also has a Santander junior account (pre mini 123) which gives her 3% and a debit card. This is for her to learn about money, accounts, etc. I pay her pocket money in by SO so it doesn't burn a hole in her pocket.