Savings for 16 year old

admiral_traveller

Hi there,

I currently have £3,600 sitting in a Halifax account for my 16 year old son. We had a Halifax Regular Saver account that I was paying £100 per month into for the last 3 years, but as he is now 16 he is too old to keep it.

I have transferred £2000 into a newly opened Santander 123 Mini account - which will pay 3% on balances up to that amount but I am now wondering what to do with the remaining £1600?

In all honesty, we will probably start spending it next January when he turns 17 - as are likely to purchase a car, etc, etc - so not so sure that a long term option would be any good for us.

I am also continuing to pay £100 per month into his Nationwide Regular Saver account in order to gather a bit more for him by next year.

So really I am just looking for advice on where to keep the £1600 I have already saved in order to get the best interest rate and easy access.

Any suggestions or advice would be appreciated.

Many thanks.

ValiantSon

HSBC My Savings is an easy access account that will pay 2.75% on up to £3,000 and is available up to the age of 17.

As he has a 123 Mini account he is eligible for the 5% regular saver from Santander too (paying 5% on £200 p/m). This account does allow withdrawals, but the effective rate is 2.69%, so the HSBC account beats it.

xylophone

If he could wait another year for access the Coventry JISA is currently paying 3.5%.

YorkshireBoy

ValiantSon wrote: »

HSBC My Savings is an easy access account that will pay 2.75% on up to £3,000 and is available up to the age of 17.

As he has a 123 Mini account he is eligible for the 5% regular saver from Santander to (paying 5% on £200 p/m). This account does allow withdrawals, but the effective rate is 2.69%, so the HSBC account beats it.

Why not have both? Drip feed Santander from HSBC for an aggregate 4% ish.

MallyGirl

We managed to start the last Halifax RS just before DD!!!8217;s 16th Birthday, we do £100 into the Nationwide one (useful as you can keep till 23) and have just started a Santander RS for £200 as she has a mini 123 account. Beyond that there is 2.53% to be had from Barclays HTB ISA, or maybe another interest paying bank Account. The basic Halifax Young saver will still pay 2% till he turns 18.