How to move cash around to maximise interest?

daisyfrau

xylophone wrote: »

Your child is aged 4/5?

Does she have a Junior ISA?

At the moment, the best rate for a cash JISA is offered by Coventry BS.

https://www.gov.uk/junior-individual-savings-accounts

https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html

Or you might wish to consider a stocks and shares JISA.

Example

https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-junior-isa

https://monevator.com/using-vanguard-lifestrategy-funds-life/

So I have the figures on daughters money from hubby now:

She has £5621 in a Halifax Kids Saver which pays 2% on balances up to 5k, and only 0.2% on balances of £5.000.00+, and she has an attached Kids Monthly Saver acct that pays 4.50%pa on balances of £1+ but has a maximum pay in of £100 pcm. That acct ‘matures’ each year and the balance + interest is transferred to the Kids Saver, and a new KMS is automatically opened at the same time. Her new KMS has £100 in from this month and a letter confirmed the interest rate is still 4.5%pa.

What we’re thinking of doing is (advice appreciated):
Start new S&S JISA (VLS 100% equity as she’s so young (4)) and fill up this year’s JISA allowance from her Kids Saver. Put the remaining money (approx £1.2k) somewhere else that earns more than the 2% it’s getting now.

One q: We are thinking of keeping the KMS accts going and then at the end of each year transfer the money to an ISA. At least whilst the interest rate is this good, unless we find something better (I do need to look into this!) Or in the long term is it better for her returns if we were just to save the £100pcm directly into a S&S JISA (once we can open a second one in April)?

Sorry my questions are so basic!!