Oh. Halifax 8% interest children's ISA - did I misunderstand?

gentleorange

I had been meaning to save some money for my son (when my husband was made redundant he had to use our son's savings which I felt really bad about).

My son was 6 months from turning 18 so I decided to put a slightly larger amount than I was financially comfortable with in the Halifax 8% interest children's ISA to maximize interest in that time. I put £110 a month in the account, and just today got the summary as he turns 18 in a few weeks. £660. He has earned ZERO interest in six months.

Can that be right? Does the 8% interest only kick in if the account goes past a year? I feel a bit disappointed for my son. £660 is fine, but if I'd known it wouldn't attract any interest at all I wouldn't have opened the account...

Archi_Bald

Halifax only had a 6% kids ISA, and this got reduced to 4% a while back. Interest gets paid annually on 5th April, unless 5th April is not a working day, in which case it will be paid the previous working day. Presumably they will also pay pro-rata interest when the JISA turns into an adult ISA. More on
http://www.halifax.co.uk/isas/cash-isas/junior-cash-isa/

EnglishMohican

I do not believe you have wasted your money if that is what you are thinking. Although Halifax only pay you the money every so often, the amount that they pay you depends on how much you have had in the account and for how long. So your money has been earning interest which will eventually be added. It all sounds perfectly all right to me.