Worth looking for an easier access alternative child savings account?

Analoguedad

Hello. Anyone offer any advice as to whether / where I might be able to improve on return and access to over £25,000 we have in a Nationwide limited access account (1 withdrawal per year), held in my name as "bare trustee" for my 10 year-old daughter? It's currently paying 2% on the entire balance. She already has a Junior cash ISA that is fed annually to the max allowed. We need some or all of what she has in a more accessible place for her upcoming move to secondary school. Ease of managing a withdrawal is important, in branch in the regions is not ideal. I keep looking but the amounts suggest it may well be best where it is, and we feed another easy access account once a year with what we think she will need. Thoughts anyone?

xylophone

Hello. Anyone offer any advice as to whether / where I might be able to improve on return and access to over £25,000 we have in a Nationwide limited access account (1 withdrawal per year), held in my name as "bare trustee" for my 10 year-old daughter? It's currently paying 2% on the entire balance. 

You mean that the account is in the name of your child with you as bare trustee?

She is the beneficial owner of the money in question?

 Did either you and/or your spouse provide the capital as gift(s) to your unmarried minor child?

Are you aware of the "£100 rule" in respect of the interest earned?  It applies to each parent individually.


https://www.gov.uk/savings-for-children



https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem4300

Example 14 - bare trust for a minor child

A parent creates a bare trust (see TSEM1563) for a minor unmarried child on 1 January 2021. No payments are made out, and the trustees retain all the income which exceeds £100.

Although no income is paid to or for the benefit of the child ITTOIA/S629 applies to treat the income as that of the parent because the income belongs to the child.

For settlements made before 9 March 1999, see TSEM4305.