Nationwide Future Saver question

demetra

Last year I opened a Nationwide Future Saver for my child and the anniversary date is 22 November 2019. The account has £5K in it and I have not made any withdrawals. Am I correct in that I can deposit another £5K on 23 November, and for the next 12 months the full £10K will earn interest at 3%? Am I misreading this? Thanks.

"Savers who want to deposit up to £5,000 per account year"

nationwide.co.uk/products/savings/future-saver/features-and-benefits

IanSt

I don't have the account myself but the web page certainly says you can:

"You can open this account with a minimum of £1 up to a maximum of £5000. You can increase your account balance by up to £5000 each Account Year (this does not include any interest accrued on the account)."

"Account Year means the 12-month period from the date that the account was opened and each subsequent period of 12 months thereafter."

demetra

Thanks, not sure how I managed to miss that paragraph!

xylophone

Are you personally gifting this money to your minor, unmarried child?

Are you aware of the tax implications?

https://www.moneysavingexpert.com/savings/child-savings-tax-free/

If money is given by a parent or step-parent (not grandparents etc) and the interest earned on it is over £100/year from non-ISA savings, the whole thing is taxed like it's the parent's cash.

The "£100 rule" does not apply to CTF/JISA.

demetra

Yes thanks, I know the tax implications.

crumpetman

I opened one of these for my son and the interest has just recently been paid but it's only at 2.5%. I have a flexdirect current account with them and the future saver is shown under my online account. I have made no withdrawals.

Has this happened to anyone else?