We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Halifax Kids a/c's - will my plan work?
SevenOfNine
Posts: 2,406 Forumite
Savings for Grandsons (5 & 6), and currently have £1600+ each (in a Virgin young saver easy access a/c).
Decided to move to Halifax, Kids Regular Saver 6% and a Young Saver 3%. Previously we had only regularly saved £10 per month but bunged in ££ lumps a few times a year, plan to continue in a similar fashion.
Seems to me that it is 'do-able' to put £110 per month for each by the required S/O from our bank a/c, then reimburse ourselves for £100 per month from their Young Saver a/c where the interest on their £1600+ is only getting 3%.
That way, it won't cost us more, but over the 12 months shelf life of the Regular Saver they'll have earned more interest overall. On maturity the whole lot will shunt over to the Young Saver a/c.
We have 2 local branches so reimbursing ourselves monthly won't be much of a problem, I'll double check at our appointment on Wednesday that withdrawing cash monthly is acceptable (can't see why not in account info).
Parents have the boys JISAs, we won't be left temporarily 'short' in our own bank a/c............is there something I'm not seeing in this plan? A pitfall I haven't thought of? Or is it all a bit pointless just for a pittance more interest?
Decided to move to Halifax, Kids Regular Saver 6% and a Young Saver 3%. Previously we had only regularly saved £10 per month but bunged in ££ lumps a few times a year, plan to continue in a similar fashion.
Seems to me that it is 'do-able' to put £110 per month for each by the required S/O from our bank a/c, then reimburse ourselves for £100 per month from their Young Saver a/c where the interest on their £1600+ is only getting 3%.
That way, it won't cost us more, but over the 12 months shelf life of the Regular Saver they'll have earned more interest overall. On maturity the whole lot will shunt over to the Young Saver a/c.
We have 2 local branches so reimbursing ourselves monthly won't be much of a problem, I'll double check at our appointment on Wednesday that withdrawing cash monthly is acceptable (can't see why not in account info).
Parents have the boys JISAs, we won't be left temporarily 'short' in our own bank a/c............is there something I'm not seeing in this plan? A pitfall I haven't thought of? Or is it all a bit pointless just for a pittance more interest?
Seen it all, done it all, can't remember most of it.
0
Comments
-
We have 2 local branches so reimbursing ourselves monthly won't be much of a problem, I'll double check at our appointment on Wednesday that withdrawing cash monthly is acceptable (can't see why not in account info).
No doubt you will be "double checking" whether you can "reimburse yourselves" from somebody else's account?0 -
I wouldn't be saving in cash for that length of time. Not sure if the plan is worth it if your taking money out of another account.Remember the saying: if it looks too good to be true it almost certainly is.0
-
The max monthly deposit seems to be £100, so your numbers need tweaking.SevenOfNine wrote: »Seems to me that it is 'do-able' to put £110 per month for each by the required S/O from our bank a/c
But yes, 4.5% on £1,200 of their money is better than 3% on £1,200 of their money. But at what cost to you?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards