children's savings accounts

budgie_2

Hi, I need somebody's help. I have a lump sum to invest for both my children. Has anyone got any suggestions? The new Halifax regular savings account restricts invetments to under £1,200.00 per annum. I need to invest more than this.

Kazza242

Hi budgie,

Chelsea BS' Ready Steady Save pays 5.10% AER. Minimum balance £1. Interest paid yearly.

Halifax Save4it pays 5.05% AER. Minimum balance £1. Interest paid yearly.

Nationwide BS Smart account pays 5.01% AER. Minimum balance £1. Interest paid 1/2 yearly.

Yorkshire BS One day account pays 5.00% AER. Minimum balance £10. Interest paid 1/2 yearly.

Lloyds TSB Young Saver pays 4.75% AER. Minimum balance £1. Interest paid quarterly.

There are a number of other children's savings accounts available that are run by the lesser known Building Societies. These accounts aren't as publicized as a result. They pay some highly competitive interest rates, but the terms and conditions can be quite strict. Here is a link to the Moneyfacts 'Other' savings account webpage.

The Moneysupermarket website also lists a vast number of children's savings accounts.

cloud_dog

budgie

Are you aware of the £100 interest limit on child savings accounts if money is dposited from the parent, and do you need to concern yourself about it?

If the child earns more than £100 in interest (assuming it is being paid gross, as per IR85) then the interest is taxed at the highest tax rate for the parent. If this money is a gift I would suggest you either get them to deposit the monies, or keep suitable records that the monies did not originate from yourself(s).

cloud_dog

realaledrinker

Anyone have observations about just how diligent the Revenue are about checking up on childrens' income. I opened a couple of Halifax 10% accounts today & put the 'source of funds' as 'family' rather than 'salary' .... don't suppose that will fool our Hector for one minute!

pjala

Dont forget the Halifax Children's Regular Saver account, paying a mind boggling 10%.

cloud_dog

realaledrinker wrote:

Anyone have observations about just how diligent the Revenue are about checking up on childrens' income. I opened a couple of Halifax 10% accounts today & put the 'source of funds' as 'family' rather than 'salary' .... don't suppose that will fool our Hector for one minute!

In theory it is *your* responsibility to ensure all relevant information is declared to the IR. In practice it probably comes down to you disclosing this information on your self assessment form (or similar).

cloud_dog