A & L Slash Child Account rates

pengers

Since my daughter is 16 and has 26000 pounds in her A&L account, can anyone tell me what internet account pays more than 5% and allows 16 year olds? A&L won't allow it for their 5.4% account.

deefadog

I got the letter also!

We have the £17 a week from the Mr Brown (Child tax credit i think) going into this, can this be transfered into any other savings account? As on the inland revenue form it had a special section for the A&L account!

Kazza242

FIFE1 wrote:

I have had this letter too. If you can save between than £10 and £1000 a month into it, I think the Derbyshire BS will allow you to open a regular saver account in Trust for the child. The interest rate is 5.85% with bonuses so very good although there are limits on withdrawals. I have a local branch so will check at the weekend and post a message here.

I've got a Derbyshire BS regular savings account. You are permitted to miss one monthly payment during the account year, which is between 1 Aug - 31 July. You are also allowed to make one penalty-free withdrawal during the account year. Interest is paid at the end of the account year.

If you are lucky enough to live near a Derbyshire BS branch, then you can make your deposits over the counter. If not, then you can make BACS transfers. You will receive a passbook with your account, which you can get updated in branch or by posting it to them.

The Derbyshire usually raise their interest rates by 0.2% whenever there has been a BOE 0.25% interest rate rise.

You can get more information in this account from the Derbyshire website. Here is a link to the terms & conditions online leaflet.

cheese_2

Lovely and fantastic to the girl who recommended Derbyshire Bs for the money. I've discovered a branch in my home city and am going to open the account there and move the money form A&L in July. Thanks for that!!
Am finding the general disgust at A&L a bit alarming as following Martin's advice I got my best mortgage deal from London and Country mortgages, and they recommended A&L!!! Not too thrilled to hear the consensus is they are crap, but thats a different thread!

isasmurf

I know there is an anti A&L bias on these boards, but I think your been a little harsh. They are a business and they are not just going to give money away.

I think this reduction is part of their long term strategy of directing more business away from branches. I wouldn't be surprised if they are doing this to launch an online version in the near future.

Why do I think this? Because in their annual report they say, "During 2005 we will be continuing to enhance our range of internet accessed savings accounts."

It's all part of their strategy of building a 'direct bank with a high street presence'. Their Premier Plus account is the key product in this strategy.

cloud_dog

Isasmurf, wouldn't dissagree with you (as you seem to have actually read some literature on A&L) but......... :-) ..........

Since A&L demutualised they have always been a very (not sure of the right words but) 'focused' company. To this end they always tend to offer headline grabbing rates (savings and mortgages) but when you look at the product overall there are always strings attached somewhere - sweeping statement I know - either time based or penatly based. I do not feel comfortable with having to scrutinise their T&C's to the 'nth degree (I'm used to reading and digesting t&C's) and then trying to second guess what they may change over a period of time that will adversly affect me (their recent hike in the cost of moving a mortgage away from them is a prime example).

Anyway, apologies (everyone) for going off track.

cloud_dog

FIFE1

I've been down to the Derbyshire BS and you can open a Regular Savings account (5.85% AER Gross subject to bonuses see below) for a child in trust - no problem. If you have a branch near you wander along with a birth certificate for your child and a driving licence/ passport + another form of ID and it takes no more than 15 minutes and not a form to fill in. If you want to open by post that is fine print off an application form from their website. 3 forms of ID plus Birth certificate will be needed Sue Beckingham at Glossop Branch on 01457 855351 will help anyone with questions or send out any forms to people.

Minimum savings £10 per month Maximum £1000. You can miss one month or make one withdrawal a year without losing out on bonus rate. Hope this helps anyone.

FIFE1

trevor74

I have received the A+L news this morning!! So I to am on the hunt for an alternative. My son is only 22 months but has already managed to save himself £1400. I am the trustee on the account - is there any reason why I couldn't move the money to the A+L on line saver account that I have (which is practically empty). Obviously as a family we would know this money is my sons - do the bank actually need to know. I'm a bit unclear about the tax implications. Can someone explain the benefits of a 'childrens account' over a normal savings account. If it makes any difference we make monthly payments of £10 into his account plus bithdays, etc Our long term plans for the account are that we would prefer to stay in contol of this money and make decisions on when and how it is spent - so CTF not really what we want.

FIFE1

If you are a taxpayer that wouldn't be a good idea as if the account is in your name you would be taxed on it in accordance with your tax position. If the account is held in your son's name in trust you can fill in an R85 to prevent tax being paid on the interest and you still control the account. Technically if interest exceeds £100 per annum on money the parent has donated then at that point tax becomes payable but at the moment with £1400 of captital that wont be a problem.

beaker141

FIFE1 wrote:

If you are a taxpayer that wouldn't be a good idea as if the account is in your name you would be taxed on it in accordance with your tax position. If the account is held in your son's name in trust you can fill in an R85 to prevent tax being paid on the interest and you still control the account. Technically if interest exceeds £100 per annum on money the parent has donated then at that point tax becomes payable but at the moment with £1400 of captital that wont be a problem.

I had a look at this, but T&C's of the current account and online saver are all that you must be over 16,or possibly 18 to open and operate so I don't think they allow these accounts to be held in trust for kids.

I am thinking of getting a bit riskier with the kids money nowand either unit trust it or buy selected shares in quite solid companies.