Saving goverment benefits for child tax free

xylophone

Junior Isa rules here - https://www.gov.uk/junior-individual-savings-accounts/overview

The £100 rule does not apply to them.

Happytravelling

I'm not sure there is a way around it.

You could use your own ISA allowance, as other people have mentioned. You get access to the money and it remains tax free although its not in your daughter's name.

The Junior ISA won't let you access it, so if you're thinking about using it to fund specific things that she needs before 18, that's not going to be any good.

As I understand it, you can't ask for child benefit to be paid into a children's saving account so you couldn't do that either.

You can each (both parents) give a 'gift' that earns up to £100 in interest, so this doubles the amount you can save, which means it will be even longer until it becomes a problem.

It may be best to do a combination of saving in your ISA, saving in an account in her name (such as the regular saver) and putting some away into the junior ISA.

Depending on how soon and how frequently you'd need to fund various purchases, the balance may reduce that keeps interest to below £100.

I have no idea how HMRC would be able to keep up with children's savings earning over £100/ £200 as a result of money gifted by parents, especially if you have ad hoc payments off other family members or birthday money because it would be pretty difficult to track, so I can't imagine it causing much of a problem, especially if you don't get to the point where she's earning thousands in interest... but this is just my opinion!