Halifax Kids Regular Saver - Maximum Initial Deposit?

FudgeHouse

My daughter (12) has an savings bond due to mature later this month of around £6000 and we are looking for a new investment.

The Halifax Kids Regular Saver is offering 6% gross - Their website states that the account can be 'opened with just £10' and that you can then 'Pay in any amount between £10 to £100 each month by standing order'.

Does anyone know if it is possible to pay in the £6000 as the opening amount thereby gaining 6% on that plus the monthly deposits?

HappyMJ

No you can only put from £10-£100 into the account in the first month which includes your initial deposit.

xylophone

Does your daughter have a JISA?

Westie983

maximum payment in the kids regular saver is £100, but you could put some of the money (£4080) into a JISA this year and the remainder (£1020) into a young saver (3%) where you can then use the money to pay into the kids regular saver.
On maturity (12m) you can put the money into the JISA.

You wont be able to withdraw from the JISA till your daughter is 18, so if you will require some of the money before then, keep some in the younger saver.

Flobberchops

MJ and Westie are quite correct. The reason Halifax can offer such an attractive headline rate on their Kids Reg Saver is because it's quite severely restricted in terms of deposits, meaning they'll only be paying you a modest sum of interest at maturity. If my maths is correct, you're looking to make about £32 interest on the maximum sum of £1200 deposited over the course of the year (as near to the first of every month as possible, of course!)

The 3% JISA is a good account to pair with this but only takes another £4080 yearly. If you have an adult cash ISA registered with the same contact details this is increased to 4%. Worth noting also that the Young Saver is being reduced from 3% to 2.25% this month, making it still a decent choice but not as attractive as before.

I think the optimum strategy here is to immediately put £4080 in a JISA, £1820 in a Young Saver, and open a Kids Reg Saver with £100 at the start of a month. Then every month move £100 from the Young Saver to the Reg Saver (or add the extra cash yourself), and at maturity (and in a new tax year) deposit the £1232ish into the JISA and open a new Reg Saver which you continue feeding £100 a month with new cash or Young Saver money.

That's if you're not interested in a Stocks and Shares JISA... worth considering, possibly.

FudgeHouse

Many thanks for everyone's replies.

I thought that the 6% rate was too good to be true - Halifax's website is quite misleading !