kids savings, now what?

Mimi_Arc_en_ciel

Hi,

I've been putting money into 2 children's regular savings accounts with the Halifax @ 6% for the past year.

I've had a letter to state that now the year is up, I can either leave the money in the account and it will become a young savers account (3%) or I can transfer the funds into another account and then keep the 6% interested in a regular saving account

Now, obviously the 6% is more appealing.... But where do I transfer their funds? They do not have another account..... ISA?

Thanks!

bsms1147

Open a new regular savings account for 6%.

And do nothing with the money already saved since it will be in a 3% account by default.

xylophone

Are they eligible for the Halifax JISA? Remember that interest over £100 on money given by a parent outside tax privileged schemes like JISA will be tax as the parent's.

AlwaysLearnin

You should be able to open a Young Saver account @ 3% easily enough if you haven't already got one:

http://www.halifax.co.uk/savings/accounts/?pagetabs=6

Make sure it's registered for gross interest

bsms1147

AlwaysLearnin wrote: »

You should be able to open a Young Saver account @ 3% easily enough if you haven't already got one:

This is what the account will automatically become;

Mimi_Arc_en_ciel wrote: »

I can either leave the money in the account and it will become a young savers account (3%)

AlwaysLearnin

Yes, but if you have the young saver prior to expiry and transfer the balance from the regular saver on expiry, then the regular saver can be renewed maintaining its account number, which means the existing standing order arrangement still works okay.

Mimi_Arc_en_ciel

Hi,


Sorry its taken me a while to reply - And thank you for taking the time to reply


I never even thought about re-opening another Regular Savings account! for some reason I thought you were only allowed 1 account IYKWIM