Top Cash ISAs Discussion Area

eaustin

I opened a new ISA back in April but only now have funds available to deposit.

Can someone please confirm whether the bonus expires 12 months after the account was opened or 12 months after the first deposit. I have had a quick search on this site and on the Santander site but couldn't find the answer.

thanks in advance

Lokolo

eaustin wrote: »

I opened a new ISA back in April but only now have funds available to deposit.

Can someone please confirm whether the bonus expires 12 months after the account was opened or 12 months after the first deposit. I have had a quick search on this site and on the Santander site but couldn't find the answer.

thanks in advance

Most likely opening of the account.

Huscarl

I've read this thread, but as things have changed in the economy over the years, and with fixed/variable rate opinions differing, I wondfered if someone could advise me.

I have three young kids (6, 4 & 2) and simply want to start paying towards their future, maybe £10 per month each to age 18. I looked at Children's Mutual, which someone at work told me was good, but this site seems to be critical of them?

Which would be amongst the best to invest, untouched, for 10 years or so?

leaphaze

Huscarl wrote: »

I have three young kids (6, 4 & 2) and simply want to start paying towards their future, maybe £10 per month each to age 18. I looked at Children's Mutual, which someone at work told me was good, but this site seems to be critical of them?

Which would be amongst the best to invest, untouched, for 10 years or so?

Benchmark must be Halifax's Children's Regular Saver a/c, £10 - £100 per month for children up to 16 years; current rate is 6% tax free. Wow - wish I was a kid again!

However, be aware that this account runs on a 12-month basis. On the anniversary of opening the account, the total value including interest is dumped into another Halifax a/c. So you'll need to think about where to put the money then. After that the regular saver remains open if you continue to pay in, and no doubt you'll get a much lower rate if you fail to pay in each month.

Huscarl

leaphaze wrote: »

Benchmark must be Halifax's Children's Regular Saver a/c, £10 - £100 per month for children up to 16 years; current rate is 6% tax free. Wow - wish I was a kid again!

However, be aware that this account runs on a 12-month basis. On the anniversary of opening the account, the total value including interest is dumped into another Halifax a/c. So you'll need to think about where to put the money then. After that the regular saver remains open if you continue to pay in, and no doubt you'll get a much lower rate if you fail to pay in each month.

Thanks for that, so after 12mths they discontinue the child account and lower the interest rate?

Can't I just open the same accounts year after year?

leaphaze

Huscarl wrote: »

Thanks for that, so after 12mths they discontinue the child account and lower the interest rate?

Can't I just open the same accounts year after year?

No, no need to do that. For each child account you will need to open another account which is linked to the child account. The application form will open both accounts for you. The Halifax will dump the balance plus interest from the child account into the linked account after 12 months. As long as you continue to pay into the child account, it will continue (as long as the child remains below 16), so no need to open another account.

For me, I opened one at the end of Nov (many years ago), so each end of Nov after that, the balance plus interest was transferred into the linked account. Since I had a standard order set up, it continued to pay into the child account. All I needed to do was decide where the money went after that (the linked account had a very low interest rate - even in those days).

Basically, it's just an efficient way to build up a lump sum for a child on a 12 month basis.

You can only open one account per child, however, this account is not restricted to parents; others (relatives, godparents, friends) can also open an account with the child and the returns are still tax free. Note that the cash does belong to the child, but the adult retains control of both accounts. The accounts will be in the name of the adult and the particular child.

Hope that helps and I haven't confused you.

Spiggle

Huscarl wrote: »

Thanks for that, so after 12mths they discontinue the child account and lower the interest rate?

Can't I just open the same accounts year after year?

Hi,

I've had these for my first granddaughter for years (the interest rate was 12% then!) and have another for my second GD now as well.

If you set up an account for each child and the regulr payment on a standing order or direct debit then the balance at the end of 12 months is transferred automatically to the halifax Save4it (or equivalent) savings account that has a terrible interest rate. The regular savings account just to continues to operate provided you keep the standing order/direct debit open and the same thing happens after another 12 months.

I was terribly lax with the accumulated funds for GD1 but have recently bought the index linked NS&I savings certificates for her. I'm just about to buy some for my 2nd GD from her first year's worth of savings in the reg saver. (I have bought them as a trustee which requires a couple more hoops but means that I control them and not either my GD or her parents.)

Provided you pay each month then the only change there will be to the reg saver is if they reduce the interest payable and that will be done on the anniversary of each account when necessary (the rate has been 6% for I think two or three years now).

Hope that helps.
Spigs

Spiggle

Ooops leaphaze,

We must have been typing at the same time!!!

All the best,
Spigs

mumof2luvvlies

Thanks for this - the rate on my cash ISA was really poor so I transferred to a S&S ISA and am really happy with the decision

MissMuppet

Having just read through some of the comments on here about Santander I think I am going to have a plan B... I get my redundancy money tomorrow and want to transfer some of it into an ISA straight away, I have just applied for one with Santander but not even had a conformation email. I think I'm going to apply for another one, whoever gets back to me first will get my money... not sitting here stressing over it, if they want my business then they need to get it sorted!