Advice Please Re Grandaughter

magicmadam

I have a problem. Many years ago when the Childrens Bonds came out, I was able to buy for some of my grandchildren. These bonds are now reaching maturity (some have).
But, I did not buy one for one grand-daughter, I had run out of spare money at the time.

She is now 15 yrs. I would like to set up an account for her where I can pay in £20 per month which would pay good interest, until she is 18yrs. I would like to keep the account myself so there would be no withdrawals.

I have been looking at NS&I, but wonder if there is anything else you could advise.
Any help you can give, will be greatly appreciated. Thank you MM

myrnahaz

I can't give you any savings advice, but I just wanted to congratulate you on being such a nice grandparent. My inlaws paid into savings plans for my 2 kids for 18 years - they didn't hand the cash over as soon as the kids turned 18, but they produced it when DS needed a deposit on his first house and DD wanted to buy her first car, so both my kids had a very useful (and very gratefully accepted) financial boost that neither were expecting thanks to their very kind grandparents.

Clive_Woody

I don't know if you are using your ISA (Individual Savings Account) allowance each year, if you aren't then you could open a cash ISA - no doubt somewhere on this site is a table of best rates, if not do a quick google search for best ISA rates.

More information here:

http://www.moneysavingexpert.com/savings/best-cash-isa

You can pay up to £3000 a year into these account and the interest is tax free. You could set up a standing order to pay in money each month, or pay it in at a branch of whichever bank or building society you open it with. Most of them you can open an account with as little as £1.

magicmadam

Hi Clive, I have two ISA's of my own. One which is shut down with not very much in it as I missed paying in at the due time.
I do have another, which is still live but I don't pay in regularly.
How many ISA's can you have?
I am OAP, so not really much spare cash. Thank you for your ideas.

Myrnahaz - thank you for your kind words. I feel a bit upset over not doing anything for her as I had taken the Bonds out for her two elder siblings. MM

margaretclare

Hello

I think the advice about ISAs is irrelevant for your present query. They are 'individual', which means you can only hold one in your name, not in your granddaughter's name. You can have a cash ISA and an equity ISA every tax year, £3000 and £4000 respectively (at present) but I don't think this is what you're talking about. Your granddaughter can't have an ISA in her own name yet, she's too young (they're designed for taxpayers!)

There are numerous possibilities for saving for children and young people. You're spoilt for choice! One possibility is: http://www.ybs.co.uk/savings/childrens/freedom/index.jsp

Can I just pick you up on one thing - you're NOT an OAP! This term went out years ago. You're a retired lady, not 'old age'. 60 is the new 40, remember!

Best wishes

Margaret

Kimitatsu

If you are opening an account and making a regular payment then why not look at the Halifax regular savers account? It pays 10% interest over 12 months providing there are no withdrawals and you can keep it in trust for her (so only you can sign for it) or you could try the Yorkshire BS whose regular saver pays out 7%.

You will need to have a copy of her birth certificate though to be able to open an account for her.

You cannot open an ISA for her, it would have to be in her name and under her tax code as such.

magicmadam

Hi Margaretclare & Kimtatsu, Thank you all for such prompt replies. I did think that ISA's were probably not what I am looking for.

I will have a look at the link you have posted and the Halifax & Yorkshire look interesting, as long as I don't have to put in a large amount to begin with.

Sometimes I feel like a 90 year old OAP, other times not so. It's getting my brain around things like this give problems.
I was brought up with s PO saving stamps - all these new things are confusing.
But all your guidance is a great help.
So I will go off and have a look. I've asked her mum for birth certificate - but she's not good at keeping things handy. So fingers crossed.
Thanks again MM

Clive_Woody

magicmadam wrote: »

Hi Margaretclare & Kimtatsu, Thank you all for such prompt replies. I did think that ISA's were probably not what I am looking for.

I will have a look at the link you have posted and the Halifax & Yorkshire look interesting, as long as I don't have to put in a large amount to begin with.

Sometimes I feel like a 90 year old OAP, other times not so. It's getting my brain around things like this give problems.
I was brought up with s PO saving stamps - all these new things are confusing.
But all your guidance is a great help.
So I will go off and have a look. I've asked her mum for birth certificate - but she's not good at keeping things handy. So fingers crossed.
Thanks again MM

Sorry, I think I misunderstood, I thought when you said you wanted to keep the account yourself, I thought you wanted to open it in your name. The others are quite right that you can't open an ISA in somebody else's name.

Don't be daunted by the choices, and don't let any bank or building society do the hard sell on you. This is a lovely thing to do for your grand daughter and I am sure when she turns 18 she will appreciate your generosity.

I think with a lot of kids savings accounts there is no minimum payment (well maybe £1).

magicmadam

Hi Clive, thanks for getting back again. I didn't explain things very well.
Yes, I want an account in grandaughter's name (in fact I don't want her to know about it) so I have control over it.


I think I shall go for the Halifax one, she is just 15 yrs so it will give me a year at good interest, IF her mother finds her birth certificate, which she hasn't yet!!

Love your tag by the way - except I support the Arsenal - different game, different ball - (ducking out of the way now!!!) MM

maple41

Hi Magicmadam. Just one word of caution with the Halifax a/c - they will only let you do it until the child is 16. Then they insist a/c is either transfered into child's name (child has to sign tax form) if you still want it taxfree or close it transfer the balance elsewhere. They say this is inland revenue rules. Other banks / building societies have different interpretation of the IR rules. I speak from bitter experience having gone through this last year and this.

magicmadam

Hi Maple41. Now I am confused again. I had read-up on the Halifax one and realised it would have to be changed once she reached 16yrs.
But, I did not realise the implications of this. Just thought I could continue it as I wanted.

Leelah (g/daughter) was 15yrs on 19th July, her mother can't find the birth certificate so I have ordered one - probably take at least a month.
So, already time is eating into that initial year.

You say you found this out by experience - how did you resolve it? If you did.

Thank you for being kind enough to reply and would be grateful if there are any other ideas. MM