Best rate for 3 years?

*Rainbow*Warrior*

Would appreciate a bit of advice please.

I have 2 fixed rate bonds for my children, which have just matured, approx 2.5k in each. My son is now 18 so I'm considering putting his money into an ISA, but the rates are pretty low and I'm wary of tying the money up for too long in case rates rise. I'm looking at a fixed rate account with Aldermore that pays 2.7% for 3 years. It's not an ISA but I assume he can complete an R85 to get the interest tax free as he's still in education and not earning.

My daughter is 15 so would probably still qualify for some sort of children's account - but I haven't been able to find anything decent. She does have a Halifax Young Saver which (I think) pays 3%. Is it best just to put her maturing funds into the Halifax account?

Are there any better options out there? I'm going dizzy with looking at so many different products!

Archi_Bald

Your son is an adult and has, by law, the right to look after this own money now. Like any adult, he could take advantage of the 5% TSB Plus current accounts which easily take his £2.5K and leave room for interest.

Your daughter could be eligible for the Halifax JISA which pays 4%, and her allowance is now £4,000 for the year.

*Rainbow*Warrior*

Archi_Bald wrote: »

Your son is an adult and has, by law, the right to look after this own money now. Like any adult, he could take advantage of the 5% TSB Plus current accounts which easily take his £2.5K and leave room for interest.

Your daughter could be eligible for the Halifax JISA which pays 4%, and her allowance is now £4,000 for the year.

Thanks for your advice.

I did consider the TSB account (or similar) for my son, but don't you have to pay in £500 per month?

Also, if you are suggesting that he should be doing this himself, rather than me doing it for him - well, he is aware of what I'm doing but isn't that bothered about the nitty gritty. I know it would be better for him to be fully involved, but I just want to help him find the best deal.

I did look at the Halifax JISA but it says that in order to get the 4% JISA I woud need to open an adult ISA, which only pays about 2%.... unless I've misunderstood that. I am looking for a new ISA for myself as well - but would hope to get a bit better than 2%.

I think the next best is Nationwide JISA which seems to be 3.25%.

colsten

I won't comment then on when your son will learn how to manage his finances. He can put £1,250 into each of the 2 TSB Plus accounts, set up an SO on both to swap £500 on the same day each month. Done.

You, or the other parent, just need to have £1 in a Halifax cash ISA for your daughter to be entitled to the 4% JISA. You could, in theory, transfer £1 in from an existing ISA you have. Once she is 16, she can open that JISA herself (and she will also be entitled to an adult cash ISA then)