Childrens Savings Accounts Discussion Area

refluxer

I couldn't find a suitable, general thread discussing kids' savings accounts (and thought this info might get lost in the Top Easy Access thread), so I decided to create one

There's been some movement with the rates offered on kids' easy access accounts today, for anyone interested.

Barclays have raised the rate of their Children's Savings account from 1.85% to 2.32% which makes them a (relatively) decent option for larger amounts of up to £10k if you want online access (children's accounts with higher rates are typically either limited to £2-3k or are branch/post only).

Halifax have also put the rate of their Kids Saver from 1% up to 2% for balances up to £5k (although you can open two of them). Not the highest rate available, but it's at least in the right ball park and this account can be opened and managed online, which is rare for a kid's account. MSE state that withdrawals can only be made in branch or via a parent's Halifax current account but this isn't right - at least not for the account I hold, as I'm able to make payments directly from it to any UK bank account (and I don't hold a Halifax current account).

Lastly, Nationwide have put the rate of their children's Future Saver up from 2.50% to 3% although this account doesn't appear to be available at the moment so the rise is currently just for existing account holders only. You can only pay in up to £5k and can only make one withdrawal per account year with this one, otherwise the rate drops. I'm fairly sure this has only been withdrawn fairly recently, but hopefully they'll make it available again soon.

eskbanker

refluxer said:

I couldn't find a suitable, general thread discussing kids' savings accounts

The 'official' thread, i.e. linked from the main editorial article, is https://forums.moneysavingexpert.com/discussion/1038/use-your-child-best-child-savings-account, but, while running to 81 pages, it hasn't attracted any posts for over a year!

refluxer

eskbanker said:

refluxer said:

I couldn't find a suitable, general thread discussing kids' savings accounts

The 'official' thread, i.e. linked from the main editorial article, is https://forums.moneysavingexpert.com/discussion/1038/use-your-child-best-child-savings-account, but, while running to 81 pages, it hasn't attracted any posts for over a year!

Thanks for that - the wonderful forum search facility didn't show that one in the results (despite my best efforts) and I don't think I've ever scrolled far enough down the MSE article pages to see those links !

Ah well - this info wasn't necessarily about the 'top' accounts (as many of those have restrictions that make them unsuitable for many) so maybe I'll keep this going as a rival thread to discuss a wider range of options

ForumUser7

Really good idea - thanks @refluxer !

As of today, HSBC MySavings is up to 3.75% on balances up to £3000

https://www.hsbc.co.uk/savings/products/mysavings/

refluxer

ForumUser7 said:

Really good idea - thanks @refluxer !

As of today, HSBC MySavings is up to 3.75% on balances up to £3000

https://www.hsbc.co.uk/savings/products/mysavings/

Yes, that's a great rate and, as the savings account is linked to their own current account, it doesn't require the parent to be an HSBC customer. The downside to this though is that you can't apply online and have to visit a branch with your child in order to open the account, which involves filling in one of the longest paper application forms I think I've ever had to fill in !

ForumUser7

refluxer said:

ForumUser7 said:

Really good idea - thanks @refluxer !

As of today, HSBC MySavings is up to 3.75% on balances up to £3000

https://www.hsbc.co.uk/savings/products/mysavings/

Yes, that's a great rate and, as the savings account is linked to their own current account, it doesn't require the parent to be an HSBC customer. The downside to this though is that you can't apply online and have to visit a branch with your child in order to open the account, which involves filling in one of the longest paper application forms I think I've ever had to fill in !

When I applied, it let me apply through my dad’s online banking, but it was one of the most confusing application forms I’ve seen ever! And then you don’t actually get confirmation you’ve applied, you just have to wait a few weeks and hope the application has gone through and then wait until HSBC contact you 😂

macy08

As an HSBC customer I applied for the My Savings for my 16 and 9 year old. The older child also got a My Money current account and access to online banking. The younger one got nothing. Without calling up or going into Branch I have no way of tracking amounts in the account.  I have also been told that 9 year old needs to sign a mandate authorising me as the parent to manage his account. If it wasn't for the great rate I would have moved his money elsewhere.

eskbanker

macy08 said:

As an HSBC customer I applied for the My Savings for my 16 and 9 year old. The older child also got a My Money current account and access to online banking. The younger one got nothing. Without calling up or going into Branch I have no way of tracking amounts in the account.  I have also been told that 9 year old needs to sign a mandate authorising me as the parent to manage his account. If it wasn't for the great rate I would have moved his money elsewhere.

Surely that's exactly as expected?

https://www.hsbc.co.uk/savings/products/mysavings/

• Get your own HSBC Visa Debit Card
  On your 11th birthday, we'll open a MyAccount / Premier MyAccount for you, complete with your own HSBC Visa Debit Card to shop in stores, online or use at cash machines.

• Manage your account the easy way

  From the age of 11 you'll be able to access online and mobile banking, where you can chat with us 24/7.

macy08

eskbanker said:

macy08 said:

As an HSBC customer I applied for the My Savings for my 16 and 9 year old. The older child also got a My Money current account and access to online banking. The younger one got nothing. Without calling up or going into Branch I have no way of tracking amounts in the account.  I have also been told that 9 year old needs to sign a mandate authorising me as the parent to manage his account. If it wasn't for the great rate I would have moved his money elsewhere.

Surely that's exactly as expected?

https://www.hsbc.co.uk/savings/products/mysavings/

• Get your own HSBC Visa Debit Card
  On your 11th birthday, we'll open a MyAccount / Premier MyAccount for you, complete with your own HSBC Visa Debit Card to shop in stores, online or use at cash machines.

• Manage your account the easy way

  From the age of 11 you'll be able to access online and mobile banking, where you can chat with us 24/7.

Yes, as expected for the 16 year old. But not the younger one despite the website saying

"Take your money out at the bank

You can use your cash book to withdraw money from your savings account"

All I have received for him is the account number and sort code, nothing else.  Will need to back into branch to get this sorted.

My main issue is with them asserting that the 9 year old sign a mandate authorising me to manage his account on his behalf.

jonnersb77

I'm not at all happy with HSBC about their MySavings / My Account set-up for kids. I opened MySavings account for both of my kids a couple of years ago. When your child reaches 11 HSBC tell you your child is getting a MyAccount (current account) but what they don't tell you (certainly not clearly, though I am sure in the small print!) is that they re going to transfer the money from the MySavings account (with good interest rate) over to the current account (surprise surprise, earning no interest). I've just received the annual interest statement through the post and seen that my son's account has earned no interest in the last year, meaning him missing out on over £100. Really poor practice. How does this encourage kid's to save, more likely just to distrust banks!? The account can't be managed / accessed online meaning you would have to go to a branch to check the balance. And you get the one interest statement sent by post once a year meaning we didn't notice HSBC moving the savings monies into the current account. Disappointing. Watch out for this if your child has a MySavings account.

eskbanker

jonnersb77 said:

I'm not at all happy with HSBC about their MySavings / My Account set-up for kids. I opened MySavings account for both of my kids a couple of years ago. When your child reaches 11 HSBC tell you your child is getting a MyAccount (current account) but what they don't tell you (certainly not clearly, though I am sure in the small print!) is that they re going to transfer the money from the MySavings account (with good interest rate) over to the current account (surprise surprise, earning no interest). I've just received the annual interest statement through the post and seen that my son's account has earned no interest in the last year, meaning him missing out on over £100. Really poor practice. How does this encourage kid's to save, more likely just to distrust banks!? The account can't be managed / accessed online meaning you would have to go to a branch to check the balance. And you get the one interest statement sent by post once a year meaning we didn't notice HSBC moving the savings monies into the current account. Disappointing. Watch out for this if your child has a MySavings account.

As per the quoted wording in the previous post, the current account is accessible online and should be operated alongside the savings one instead of replacing it, so there should be two separate statements, or at least one statement covering both accounts.  Moving the money from one to the other certainly sounds like it shouldn't have happened automatically, so worth querying them further on this....