Lloyds Young Savers paying 0.5% APR

jimjames

xylophone wrote: »

Particularly if

And if the parent has provided the capital, has he had regard to the £100 rule?
http://www.moneysavingexpert.com/savings/child-savings-tax-free

"Any interest earned on money specifically given to them by a parent is only tax-free up to the first £100, per parent or step-parent, each year. If your child earns more than £100, the whole lot is taxed at the parent's rate."

Guess there is one benefit with the interest rate of 0.5% in that they don't need to worry about breaking the £100 rule (as 0.5% of £17k is £85)

Obviously too late for the OP now but for anyone else reading it shows the dangers of keeping so much in cash for such a long period of time. Investing for children is often a far better option as there is so much time for the investments to grow and compound over 18 years or more.

xylophone

Guess there is one benefit with the interest rate of 0.5% in that they don't need to worry about breaking the £100 rule (as 0.5% of £17k is £85)

Indeed but the OP said

Child is now 13yrs now and checked with bank staff before reinvesting. Prior to that we took a sizeable sum out

Now if at some stage the child had well over £17000 and at some point was receiving 3% and the capital was provided by a parent/parents....