Child turning 16

bobbleman

Hi

I was hoping for some advice on the best way to progress for a child turning 16. At present he has a Halifax Kid's Regular Saver 6% linked to a Young Saver 3%. Both products are only available until the 16th birthday at which time Halifax is supposed to get in touch and offer alternatives, which I suspect are just going to be <1% normal adult style savings options at inferior rates.

As a first adult account, what would you recommend? I would like to get them into the current account way of thinking as soon as possible so they know about direct debits/standing orders and budgeting etc, as well as keeping a decent rate for savings. There are some good student accounts which only seem to apply at university level, I haven't found anything decent for college level.

The main benefit at present is that the Young Saver is instant access, and I would like to keep paying the amount I put in the Regular Saver at least until he is able to get a job in some years time. I would like him to continue in the regular savings mindset, whilst having an account with instant access.

Are there any decent products to fill the college gap between child and student (uni)?

Thanks in advance for your suggestions.

xylophone

Does he have a CTF/JISA? If not ( or if he has, consider transfer)?

https://apply.halifax-online.co.uk/personal/a/apply_savings/juniorisabelow18

https://www.gov.uk/child-trust-funds/overview

A good home for money required at 18 for college etc.

For everyday banking http://www.which.co.uk/money/bank-accounts/reviews-ns/bank-accounts/childrens-bank-accounts/

bobbleman

Some good information there, thank you!

Westie983

you can have both accounts till the day before the childs 17th birthday so affectively during the childs 16th year... although this last year will mean tax is paid but can be reclaimed at the tax year end if child is still in education.

You are able to open an adult ISA at 16 so that maybe an option,

Westie983

When does the Regular Saver mature? is it before the child's 16th birthday? if so you can open a new regular saver while the child is still 16 although they would turn 17 during the year you would still be able to fund the account till the maturity....

this will give you a "extra" year of 6% interest.