Bank accounts for teenagers

henrik1971

Hi there. Looking for some recommendations, please.

I have two daughters whose grandfather passed away recently. He left them each £500.
My wife and I have been speaking, and the plan is for them to save £400 of it (but for the money to be accessible if needs be), and the other £100 they can spend now on whatever they want (within reason!).

So, we're looking for the best account for a 13 year old and a 15 year old. It could either be one account for the whole amount which hopefully pays some interest, or we were thinking an easy-access account (with a cashpoint card?) for the £100, and then perhaps a stocks and shares ISA for the £400.
What do you think?

Thanks in advance!

mum2one

my DD is 12yrs - she has an account with Santander - online banking and a debit card, - she has her pocket money paid in there, she has a 2nd account with Natwest - debit card.

Soz - no suggestions for £400,

solentsusie

Sorry for your loss.

Here is a link to an article on child/teenage bank accounts and teaching them about handling money:

http://www.theguardian.com/money/2014/nov/01/first-bank-accounts-teens-tweens

http://www.theweek.co.uk/prosper/61188/the-best-current-accounts-for-teenagers

https://www.moneyadviceservice.org.uk/en/you-your-kids-and-money

I suppose the question is are you trying to teach them the value of money and how to handle it themselves? A good thing to do especially if either/both of them intend to go to university, one place where young people rack up a lot of debt. Better to start learning about the value of money now, it should be a compulsory lesson in schools as it would help so many people not get into debt.

Personally I would keep the £100 and the money you want to save separate. It could be way too tempting for them to spend the rest if it is just there in an easily accessible bank account. And you will probably not get the best returns on it.

I remember many years ago when my father died, my mother gave me and my sister £100 of our inheritance money each. I have no clue what my elder sister did with hers but I spent mine on driving lessons. I saw that as an investment in myself.

Good luck.

pinkdalek

Halifax always seems to be popular for young accounts, even Martin Lewis praises them for their good rates on young savings/bank accounts.

grumbler

http://www.santander.co.uk/uk/current-accounts/123-mini-accounts/123-mini-current-account

mossy

My daughter has just opened an account with Natwest which comes with a debit card and online/mobile banking. She also has a savings account linked to it. However the interest is pretty standard (i.e poor). So I think you are right to think about putting the £400 in an ISA or something similar that pays more.

We've had no problems so far. We bank with Barclays so would have set her up an account there but they don't do online banking until the child is 16!!

xylophone

They could each open an account for spending money and one for the savings.

HSBC child account each for the £100.

Santander 123 mini each for the £400.