Halifax Junior ISA

teacookie

Hi folks. We set up a jr ISA for our child a couple of years ago. We were originally told when we signed up that this would remain at 6% until she was 18 yrs old (appreciate that this is pretty good). However, have just received a letter that terms changing and rate reducing to 4%. I know is normal to change current account rates but is this normal for children's accounts? Anyone know more about this sort of thing?

Laycity

The account was never a fixed rate - you either misunderstood or were told a porky....This account has a variable interest rate so in theory they can change the rate to whatever they want. It also currently pays 4% only if a parent also has an ISA with them.

It's still a competitive rate though...

Archi_Bald

That JISA was originally 6% AER variable, and new applications have been 4% AER variable for a couple of months already. Emphasis on variable.

It was only a matter of time for the rate to be dropped for existing accounts. There was no commitment ever the rate would be fixed for the next two decades, or for any number of years or months.

4% variable is still exceptional in the current environment.

jimjames

For long term saving for a child a cash ISA is unlikely to be the best option. Might be worth investigating investment options.

teacookie

Thanks to all. Duff info from them originally but I understand now and have a better incite into what to into for no.2. Cheers.

schmouse

We signed up our child for a Junior Isa two years ago, and we were also told by a Halifax 'advisor' that the 6% rate would last until our child was 18.

We complained, and the Halifax have accepted that we were wrongly advised, but won't do anything about it!

PeacefulWaters

schmouse wrote: »

We signed up our child for a Junior Isa two years ago, and we were also told by a Halifax 'advisor' that the 6% rate would last until our child was 18.

We complained, and the Halifax have accepted that we were wrongly advised, but won't do anything about it!

While you may have been given incorrect information verbally, the web site, the terms and conditions booklet and the printed interest rate information all clearly state that the rate is variable.