Savings for 16-17yr olds

Missy1708

Help...! Does anyone know of a longer term savings account for 16-17yr olds where one can put a large lump sum. My son has received a significant gift from his granny & I can’t find a longer term savings account to put the lump sum into as he is not 18yrs old. Junior cash isa ceiling is too low.

xylophone

You have filled his JISA already?

https://www.nationwide.co.uk/products/savings/future-saver/features-and-benefits will take £5000.

Will he want to buy a property?

https://www.moneysavingexpert.com/savings/help-to-buy-ISA/

Below may allow you to open in bare trust for your son.

https://www.metrobankonline.co.uk/savings/products/fixed-term-savings/

Albermarle

Can not answer your query directly but worth pointing out that for most people it is not worth bothering with a cash ISA ,as Non ISA savings accounts pay better interest . Since the last couple of years you can earn up to £1000 interest without paying tax, so for most people the cash ISA is redundant ( although still exists and are useful for people with high levels of savings and or/higher rate taxpayers )

jaybeetoo

You can put some into a JISA which earn great rates until 18. I’ve had the same problem as you. There is a gap in the savings market for 16-17 years olds. It’s frustrating. I don’t know why most accounts are for age 18 and above.

Albermarle

In the end maybe easier for you to keep it a savings account and transfer it when he is 18 .
( or when he is 25 so he doesn't blow it )

Alexland

Does he have a Child Trust Fund? If so there is a trick where you can make a full CTF contribution, possibly another if his birthday occurs before the end of this tax year, transfer the CTF to a JISA, make a full JISA contribution this tax year, then another at the start of next tax year.

Alex

xylophone

In the end maybe easier for you to keep it a savings account and transfer it when he is 18 .
( or when he is 25 so he doesn't blow it )

Not wise - this is an absolute gift to the son and should be held in an account in his name with the parent as bare Trustee.

Missy1708

JISA ceilings are too low. Banks have very low limits on how much 16/17 yr old can put into savings accounts. Too early to be thinking about property. The only option seems to be a bare trust - don’t know much about these....

xylophone

There is no reason why a combination of accounts should not be used.
How much money is involved?

System

I may have missed the point about "ceilings", or indeed missed the point completely, but have you considered National Savings? Either buy premium bonds for him with the money, which may come up with a few prizes until your son is older and able to decide how he wants to deal with the money, or perhaps a National Savings account (low interest but as far as I can see no limit on how much can be paid in).