Older teenager savings

Mikeeuropa

My daughter is soon to turn 16. I notice that many of the "child saver" accounts terminate at this age or within a year at most.

Unfortunately, the majority of the "high" interest paying current accounts that, currently, are paying better than savings accounts require a decent salary to be paid into them every month.

Can anyone shed light on what options there are out there for people in this age group to get a reasonable (relatively speaking!) return?

jimjames

Mikeeuropa wrote: »

My daughter is soon to turn 16. I notice that many of the "child saver" accounts terminate at this age or within a year at most.

Unfortunately, the majority of the "high" interest paying current accounts that, currently, are paying better than savings accounts require a decent salary to be paid into them every month.

Can anyone shed light on what options there are out there for people in this age group to get a reasonable (relatively speaking!) return?

I'm not aware of current accounts that require a salary to be paid in. Most of the best ones require a certain deposit amount but have no stipulation where that money comes from. So many just transfer it into the account and back out again to meet the requirements.

Having said that, being 16 is likely to be more of a problem as I'd expect the minimum age to be 18. Under 18s and over 16s can open ISAs but the rates on them are not exactly good. Have you checked if any junior ISAs are suitable?

jigglyjugs

My daughter has this one from Natwest
Not very high interest but better than nowt!:)

The Adapt account
Earn interest on everything you pay in
Get your own Visa Debit card to use online and in shops
Manage your money on the move with our Mobile app
Use Online Banking to look after your money
Plus, for just £5 you can decorate your card with your own photo or artwork

colsten

Check out 123 mini, TSB, Lloyds youth accounts. Also Halifax JISA.

I would be surprised in the Natwest account mentioned can better any of these.

xylophone

Wouldn't a transfer to the Halifax JISA as soon as she turns 16 and can apply for herself be a good idea?

http://www.halifax.co.uk/isas/cash-isas/junior-cash-isa/

Smart limited access if suitable http://www.nationwide.co.uk/products/savings/smart-limited-access/rates-and-information

Santander 123 mini?

http://www.money.co.uk/current-accounts/bank-accounts-for-teenagers.htm

Mikeeuropa

jimjames wrote: »

I'm not aware of current accounts that require a salary to be paid in. Most of the best ones require a certain deposit amount but have no stipulation where that money comes from. So many just transfer it into the account and back out again to meet the requirements.

Having said that, being 16 is likely to be more of a problem as I'd expect the minimum age to be 18. Under 18s and over 16s can open ISAs but the rates on them are not exactly good. Have you checked if any junior ISAs are suitable?

Yes, sorry, I meant an amount that was equivalent to a decent salary which my daughters Saturday job doesn't qualify for! But yes, I guess you can get round that with transfers from elsewhere in and out.

Mikeeuropa

jigglyjugs wrote: »

My daughter has this one from Natwest
Not very high interest but better than nowt!:)

The Adapt account..

Yes, thanks JJ, she already has a low interest current, was looking for something that would earn more.

Mikeeuropa

colsten wrote: »

Check out 123 mini, TSB, Lloyds youth accounts. Also Halifax JISA.

I would be surprised in the Natwest account mentioned can better any of these.

Hmmm, she has more than the upper limits on the current accounts and not sure we want the no withdrawal limits of a JISA. Could do multiple accounts I guess, maybe split some in a JISA and some in one of the others.

Mikeeuropa

xylophone wrote: »

http://www.money.co.uk/current-accounts/bank-accounts-for-teenagers.htm

Thanks for the link, accessible information there, although struggling to find a similar list of teenagers saving accounts there.

colsten

Mikeeuropa wrote: »

Could do multiple accounts I guess, maybe split some in a JISA and some in one of the others.

Great way to condition her to the adult banking world, where multiple accounts seems to be the norm now if you want to best.

Also perhaps an ideal opportunity to introduce her to personal finance software, such a YNAB or BankGenie

xylophone

teenagers saving accounts there.

There are no "savings accounts" just for teenagers.

You were give a selection of savings accounts and current accounts which pay interest that is higher than anything except the accounts that are only available to over 18's.

She already has a JISA it would appear- she can get a better rate from Halifax. She could save in limited access Smart.
Failing that she chooses an interest bearing bank account open to under 18's.