Savings options for 18 year old

Smykers

My 18 year old daughter has been given some money by her grandmother. She will open a Help-to Buy ISA and feed in the maximum £3400 over the year. Any suggestions what she should do with the balance (approx £10k)? She is going to university in October so will be needing some funds although she is applying for the tuition fee loan and the basic maintenance loan. Ideally she would like to put the additional money in a savings account, at least for the time being, but it is difficult to work out where. Any suggestions would be appreciated. Thanks.

xylophone

It may be that as she is still at school, high interest current accounts (which are otherwise open to 18 year olds) are not open to her.

However, she might try Tesco? Two accounts to take £6000?

It may be worth her while considering the TSB under 19 for the 2.5% interest on £2500.

There is a student account on offer for later.

http://www.tsb.co.uk/current-accounts/student-bank-account/

More re student accounts http://www.moneysavingexpert.com/students/Student-bank-account

I don't know whether the Santander mini is available to her while she is under 19- you could check.

Incidentally, there is a 4% HTB on offer from Santander now.

News re the Lifetime ISA http://www.moneysavingexpert.com/savings/lifetime-ISAs


There are some fixed rate savings products which might be worth considering for a couple of years.

http://www.thisismoney.co.uk/money/article-1621507/Best-savings-rates-Fixed-rate-accounts.html

Dan83

If your daughter can get the accounts (for reason mentioned above)

Nationwide £2500 @ 5% AER (for 12 months then the rate drops)
TSB £2000 @ 5% AER

set up standing orders from nationwide to TSB, then from TSB to nationwide for £1000 each month and the accounts will run themselves.

Put the remaining £5500 in 2 tesco current accounts as mentioned above.

£2750 in each tesco account would allow the interest to compound each month.

She could also log on to nationwide and TSB each month to transfare the interest to tesco, that way the nationwide and TSB also compounds, but at at a lower rate.

Smykers

Thank you both for your links and suggestions. I will review the accounts you have suggested to check eligibility and go from there. Thanks again.

Lpj

Hello
I have 18 year old twins. They already have the TSB under 19 accounts. Their junior ISAs have now been cashed in and are in Premium Bonds. They could do with another bank/savings account with a good rate of interest. They don't need or qualify for student accounts yet. Any ideas please?

xylophone

https://www.lloydsbank.com/current-accounts/all-accounts/under-19s-account.asp

might do.

Lpj

Thanks but only 11-17 year olds can apply :-(

Lpj

They do have a Nat west account they could switch from.........But haven't got any Direct debits and would have to be a low minimum monthly pay in

xylophone

http://www.which.co.uk/money/banking/bank-accounts/guides/best-childrens-bank-accounts

I had wondered whether as it's "under 19" whether they might squeeze in.

Getting another bank account seems possible but not with a passable interest rate.

They might need to separate the savings from the current account, but deposit rates aren't great either.

http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html