Kids Savings Account Interest Rate

BlackSwan83

Hi Everyone.

I currently have a HSBC kids saver for my child which is still only offering 0.45% interest.

Should the increase in interest rates be passed onto this account or do you think switch accounts?
If so can you recommend one please.

Thank you 

Band7

There are a lot better rates, incl a 3.5% instant access account at HSBC https://moneyfacts.co.uk/savings-accounts/childrens-savings-accounts/

BlackSwan83

Thank you.
Has anyone had experience with Virgin Money.
They have a kids saver for 4% but you have to go into Brance to open it which is a long way from me 

ForumUser7

BlackSwan83 said:

Thank you.
Has anyone had experience with Virgin Money.
They have a kids saver for 4% but you have to go into Brance to open it which is a long way from me 

@blackswan83 OP, if you don’t live near a branch I don’t think this account is for you if you if you’ll need to make withdrawals ‘ To make a withdrawal from the account you must give us 30 days’ advance notice. And this has to be done in Store.’

in terms of experiences, both VM and HSBC are very poor - bad customer service, poor communication, shoddy technical systems - even more so than other banks. On the whole, I decided to keep using HSBC because of the 3.5% rate (I hold this account), but I stopped using virgin money as my current account approx 1
month after opening - there were just too many problems. These included random balance fluctuations (that would resolve themselves within 24 hours?!), ‘balance unavailable’ error messages, misinformation etc. I made a complaint with virgin money approx. 17 weeks ago and they are still ‘looking into it’ - I.e. not assigned yet as it is still in the queue due to so many customers complaining - providers are supposed to resolve complaints within 8 weeks… I still use it for a nominated account, but mostly because I haven’t got round to changing my nominated accounts yet. Which ever one you use best of luck, but just a word of caution about both really.

refluxer

Having to deal with a branch is fairly common for kids accounts so I wouldn't open one with a bank that wasn't at least reasonably local, personally.

That Virgin account has no mobile or telephone banking options and you have to give 30 days notice in a branch in order to make a withdrawal, both of which will obviously be very restrictive.

If your child is already an HSBC customer then switching to their MySavings account will be far less hassle. HSBC have internet banking and app options for that account too, for children over 11. Money in this account will be more easily accessible to the child though (once they reach 11) compared with some types of kids accounts so I guess it all depends what type of account you're after ?

Bridlington1

Of course you should switch accounts. If you switch it will give HSBC an incentive to increase their interest rates further.

If you are looking to save money aside for your child it may be worth looking at JISAs. The money can't be accessed until the child turns 18. Many offer 3%+, although a lot of the top rates are limited go branch/postal operating. See:
https://moneyfacts.co.uk/isa/junior-isas/?quick-links-first=false

Coventry BS (currently at number 2) can be opened and managed over the phone and have been pretty good with regards to customer service in my experience. I can't comment on Earl Shilton BS as they are one of the few building societies I have never used before. 

Albermarle

To add to  the above post. If your child is young and they have a JISA that they can not access until 18, then you should seriously consider a Stocks and Shares JISA. Over a period of 10 years or more you can be pretty confident that a mainstream low cost tracker investment, or multi asset fund will outperform a savings account. Not 100% certain but very likely.
For example
Junior ISA | Invest in a Junior Stocks and Shares ISA | Fidelity