Advice re bank a/c for 18 year old

Blush2783

Hi, I was just wanting a bit of advice in regards to the best option for a current account for my daughter. She has recently turned 18 and is currently in her last year of A levels and is hoping to go to uni. She got a substantial amount of money from relatives for her 18th birthday and we have been looking for a decent current account for her to set up and pay it into before she transfers some of it into higher rate savings accounts.

We were hoping to do the Santander student account but on reading the small print it says she has to have an unconditional offer from a uni or have her results at the required grades which she wont have until 18th August. I then looked at the 123 mini account however she has to be between 11-17. The main 123 account requires a monthly payment and direct debits which she doesn't have! The more banks I've looked at the more I am finding similar things ie she is too old for children accounts, too young for student accounts or doesn't have regular income to qualify for current accounts that pay interest.

Any advice would be gratefully received!
Thanks

knack92

Your daughter doesn't need a regular income to get the interest, she can simply cycle money through another account each month. I presume she doesn't currently have any account so this would require opening two accounts, not necessarily of the same type.

Since higher rate savings accounts have much lower rates than interest paying current accounts, I would avoid them if possible and go down the current account route. I don't know how much substantial is, but there are lots of options paying at least 3%. A few of the ones I have:

-TSB Classic Plus 5% on £2000
-Nationwide FlexDirect 5% on £2500
-Bank of Scotland 3% on £5000

Tesco current account pays 3% on £3000 and requires no monthly pay in so might be a good choice.

Super_Whiskey

Most student accounts will need some proof of her going to uni to open them. Usually a UCAS letter is more than enough proof. Until then, you could open a Help to Buy ISA for your daughter which she can feed the initial £1200 in to and then fund it for £200 a month. Halifax pay 4% on theirs and she'll have a hefty sum towards a house deposit once she;s graduated. Like Knack said above, your best bet is to open up a fee-free interest paying current account. Maybe more depending on how confident you think she is with her money.

securityguy

It's impressive she's got to this point without a current account. My younger, currently doing her A Levels is sorting out a group holiday at the moment, booking plane tickets and accommodation, and every one of the group of ten going has a debit card with which to buy plane tickets and is in a position to transfer money online immediately.

[Deleted User]

1. How "substantial" is the amount she received?

2. What are her plans for it? (i.e. what, and also how far into the future)

3. Why does she necessarily need a "student" account?

4. Is she planning to go overdrawn? And even if not specifically planning to, does she have the discipline not to at all costs?

5. A mean question - but one that needs to be asked, and answered honestly - Is she smart enough and also organised enough to be cycling money through multiple accounts for biggest gain? Or is there a chance she could mess up at big cost?

xylophone

How much money does she have?

Blush2783

Thank you you everyone, she and I went up and down the high street yesterday chatting to actually very helpful people in all the banks/building societies! I hadn't seen the info on the Tesco current account so actually that may be a good option given it pays interest. I will also look at the help to buy ISA as we were hoping to buy a small property near her uni for her to live in and rent out a room to help cover costs for her second year etc

She currently just has a Nationwide cash card current account with a small amount of money in it <£300 but wanted to get an account with a debit card etc. She got given around £9k + a car for her 18th so is going to mostly put that into her current account and straight into higher rate investment accounts for the future as she works but gets cash so uses that for going out etc and uses my debit card for on line purchases!

She's pretty sensible but you are right, she doesn't necessarily need a student account account I guess if there are better deals she can have. All the non student current accounts I had looked at on line seem to be suggesting she had to earn/pay in £500 a month minimum but I hadn't realized that could mean with drawing it from one account and paying it in rather than from an employer.

We will be supporting her at uni so she shouldn't go overdrawn really but the student account we were looking at also gave her a railcard which would be helpful. Like you said she cant apply for a student account anyway until that UCAS letter is in her hand so we will have a good look round nearer the summer.

Really helpful comments thanks

System

Can she not simply order a contactless debit card from Nationwide, if she has a 'cash card' account (now renamed FlexBasic)?