Best savings for childern ?

sydney2002

Flobberchops wrote: »

Yes Sydney I believe the latter is correct. Child is over 16, rate rises to 4%. Tell them to enjoy it, once they're a grown adult those kind of rates are hard to find!

ha ha...correct
Thank you for your input, appreciate the time.

xylophone

OR, does the fact the child is already aged 16, mean they get the 4.00% rate anyway ?

See my post 7 above.

Westie983

Your son will get the higher rate of 4% if you open a junior isa as he is over 16.

Please take a look at the T&C's below.

http://www.halifax.co.uk/isas/cash-isas/junior-cash-isa/

Extra interest if the registered adult holds a Halifax Cash ISA.
For children 16 and over, the higher rate will apply
A long-term, tax-free savings account for children under 18
Deposits can be made by anyone (annual junior ISA limit applies). As deposits are treated as a gift they cannot be returned to the Donor.
Opening balance of £1
Save up to £4,080, less any amount paid into a stocks & shares Junior ISA in the same tax year
Existing Child Trust Fund holders can’t hold a Junior Cash ISA at the same time. However, from April 2015 they can apply to transfer the full balance in their existing Child Trust Fund to a Junior Cash ISA in branch, as part of the application process.
The account must be opened by an adult with parental responsibility if the child is under 16, or by the child if they are aged 16-17
Withdrawals from any Junior Cash ISA are not allowed until the child reaches the age of 18, except in case of the child's death or terminal illness

Note that the money becomes assessable at 18 by your son, (think if this is what you want) and not 21.

xylophone

assessable

accessible?:)