Halifax Young Saver Rate Decrease

mrssjs

I've received notification today that DD1's YS account will reduce to 2.25% gross/AER on balances of £1-£20k from 12th Jan. No notification for DD2 though! I expect it's imminent.

Helen224488

I got the letter too very dissapointed. TSB kids account reducing from 3% to 1% on 17th Nov now Halifax kids account reducing from 3% to 2.25% in Jan. To be honest I can't be bothered to move it as my daughter is 13 and most accounts now will have to be opened in her sole name and she will have the full access. I closed the TSB kids account and put the money into Nationwide JISA for my daughter for when she is 18 as it is 3.25% but will probably drop soon too, just can't win.

I'm really annoyed that adults accounts pay more interest than kids accounts. Just trying to save for my daughter's 18th.

Archi_Bald

Helen224488 wrote: »

I'm really annoyed that adults accounts pay more interest than kids accounts. Just trying to save for my daughter's 18th.

Save in an adult account then?

Helen224488 wrote: »

I closed the TSB kids account and put the money into Nationwide JISA for my daughter for when she is 18 as it is 3.25% but will probably drop soon too, just can't win.

Halifax JISA is still 4% as of now.

Westie983

Halifax Kids Regular saver paid 6% for up to £1200 paid in over the year, you can drip feed it with the money in the young saver so getting interest both sides of the scale...

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

justme111

I find it is a bit of a waste of time - the maximum one can get is a whooping £36 in a year . On so small amounts headline rate is not that relevant.
Helen , do you mean that you can not close /open accounts without your daughter signing the paperwork or being with you?
I would be grateful if someone explained it as my idea is to make some savings they would not know about. Can I move money from my daughter's account into my account ?

mrssjs

Westie983 wrote: »

Halifax Kids Regular saver paid 6% for up to £1200 paid in over the year, you can drip feed it with the money in the young saver so getting interest both sides of the scale...

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

They both have these too ;-) drip fed from another savings account they have. I need to keep the Young Savers open to transfer the yearly funds from the regular savers into.

mrssjs

justme111 wrote: »

I find it is a bit of a waste of time - the maximum one can get is a whooping £36 in a year . On so small amounts headline rate is not that relevant.
Helen , do you mean that you can not close /open accounts without your daughter signing the paperwork or being with you?
I would be grateful if someone explained it as my idea is to make some savings they would not know about. Can I move money from my daughter's account into my account ?

Mine received £39.39 - paid £1300 in, in total

jimjames

Depending on the age of your kids it might be worth looking at investments rather than cash. No need to worry about chasing best rate and you can let the magic of compounding do it's work.

mrssjs

jimjames wrote: »

Depending on the age of your kids it might be worth looking at investments rather than cash. No need to worry about chasing best rate and you can let the magic of compounding do it's work.

They have some "tied" up, but for the most part we want easy access and control of their money

jimjames

mrssjs wrote: »

They have some "tied" up, but for the most part we want easy access and control of their money

With investments you have both unless you use a jisa but then that's exactly the same access for cash or shares

Helen224488

Archi Bald - I don't want to save in an adult's account for my child as I already have the max adult accounts I can have and also I am concerned that if I die the money will go to my next of kin and not my daughter if the account is in my sole name.

Also you say Halifax JISA is 4% - It is only 4% if the adult has an ISA at Halifax and seeing as I already have a fixed rate ISA not at Halifax I am not entitled to 4% but 3%.

Justme111 - What I meant was some banks/bldg soc's won't let an adult open an account in trust it has to be in their sole name when they reach a certain age so I can't open a new account in secret as she has to sign to open the account. I liked the TSB because this was not the case. If I open a childs account in her sole name she will get a bank card and pin and it's tricky to say this is savings for when you are 18. Even the statements come in childs name so they know how much they have and it's not a surprise on their 18th.

Anyway I have stuck with Nationwide JISA 3.25% for savings for when she is 18. I like the JISA and I am secure knowing that if anything happens to me that money will go solely to her when she is 18. I think I will keep the Halifax account as it's only reducing from 3% to 2.25% and there is not a huge amount in there anyway and once April comes around I can put it in her JISA.