Baby savings

Silver_Lilly

My 13 week old daughters garandparents want to open a savings account for her paying in £10 per month.
We have looked into high interest accounts but you need to be over 18 to open one and the childrens accounts say they would have to be in an aldult name if she is under 7.
We want to have an account in her name so she gets the tax benefit.
We dont want cfc account as we are keeping that separate.
What would you reccomend ?the more i look at accounts the more confused i get!!

cloud_dog

There's no problems with opening an account for your daughter that is initially in your / partners name. I think legally it needs to be held 'in trust', i.e. under your name, for her until aged 7. It is still her money and you can still complete the Inland Revenue form R85 to claim the interest gross (no tax deducted).

Mine is with the Nationwide. Not perhaps the absolute top paying account but good enough and hopefully you can trust them not to do an A&L and drop the headline rate at some point in the future. Also, they were extremely helpful (I think the account literature came with the R85 form).

cloud_dog