best savings account for 17 yr old

mel48rose

Hi there. My 17 yr old son currently has around 8K in an account with the Halifax. When he received his annual interest in Apr he only got £100 and the rest was taken in tax.
My question is would he be better putting this money into an isa instead? Would there be a better account for him? He doesn't mind tying the money up for a couple of years if necessary.

HappyMJ

Does he earn enough to pay tax? If not he can reclaim the tax and fill out a form to not pay any tax on future interest.

Strangely at the moment ISA's pay much less than the best current accounts even if tax is payable.

mel48rose

HappyMJ wrote: »

Does he earn enough to pay tax? If not he can reclaim the tax and fill out a form to not pay any tax on future interest.

Strangely at the moment ISA's pay much less than the best current accounts even if tax is payable.

Thanks for that. It's a funny age being 17. Seems too old for a childrens account but some accounts you have to be 18 for!!

HappyMJ

mel48rose wrote: »

Thanks for that. It's a funny age being 17. Seems too old for a childrens account but some accounts you have to be 18 for!!

The 18+ accounts may have overdrafts so he wouldn't be eligible for any of them as credit is only available to those who are 18+. There's still plenty of options out there.

colsten

here is another 17 y/o thread with great ideas: https://forums.moneysavingexpert.com/discussion/5302488

The Halifax JISA is fantastic value.

mel48rose

colsten wrote: »

here is another 17 y/o thread with great ideas: https://forums.moneysavingexpert.com/discussion/5302488

The Halifax JISA is fantastic value.

Think he will go with the Halifax JISA. Just wondering where best to put the rest?

xylophone

Nationwide Flexone current account - open regular saver then Smart Limited Access?

mel48rose

xylophone wrote: »

Nationwide Flexone current account - open regular saver then Smart Limited Access?

Thank you that sounds great for him!!