Savings for a 17 year old

FussyPants01

My 17 year old has more than will earn interest in Santander 123 account. She needs a savings account until she turns 18 but everywhere I try she needs to be 16 or 18. Any ideas, please?

xylophone

Does she have a CTF/JISA?

ForumUser7

FussyPants01 said:

My 17 year old has more than will earn interest in Santander 123 account. She needs a savings account until she turns 18 but everywhere I try she needs to be 16 or 18. Any ideas, please?

You've mentioned she needs the account until she turns 18, so possibly HSBC MySavings?

If she is happy to open through the post, and manage by telephone, Kent Reliance offers a high rate savings account (currently Demelza Children's Savings Account Issue 7), that you can open if you are under 18, and they say it stays at the Children's rate even once you are over 18 as long as you opened it before you turned 18. That currently pays 3.25% on balances up to £25,000.

refluxer

I would work your way down the MSE list here. As she is 17, she can open any one of those currently on the list apart from the Halifax Kids' Saver. Just be aware that most of the accounts can only be opened in branch or by post, so picking an account at a bank or building society who has a reasonably local branch is sensible if you want to avoid the current mess that is the Royal Mail.

HSBC is a good option - it pays 3.75% on savings up to £3000 and 1.25% on anything above that.

Opening a current account at the Nationwide would give her access to the Flex Instant Saver which pays 2.25%. This rate obviously isn't the best, but isn't too bad for a high-street bank/BS and could be a compromise for much larger amounts.

I've also just remembered that you can open a Ford Money Flexible Saver from aged 16 - this currently pays 2.65% AER so higher than the Nationwide and no need to open a current account. You can manage this both online and via the app. Withdrawals (to a nominated current account) are generally same day or next day, depending on when the request is made.

ForumUser7

refluxer said:

I would work your way down the MSE list here. As she is 17, she can open any one of those currently on the list apart from the Halifax Kids' Saver. Just be aware that most of the accounts can only be opened in branch or by post, so picking an account at a bank or building society who has a reasonably local branch is sensible if you want to avoid the current mess that is the Royal Mail.

HSBC is a good option - it pays 3.75% on savings up to £3000 and 1.25% on anything above that.

Opening a current account at the Nationwide would give her access to the Flex Instant Saver which pays 2.25%. This rate obviously isn't the best, but isn't too bad for a high-street bank/BS and could be a compromise for much larger amounts.

I've also just remembered that you can open a Ford Money Flexible Saver from aged 16 - this currently pays 2.65% AER so higher than the Nationwide and no need to open a current account. You can manage this both online and via the app. Withdrawals are generally same day or next day, depending on when the request is made.

https://www.ybs.co.uk/savings/product?id=YB681671W

YBS Internet Saver Plus Issue 13 might be a better option than the Ford Money, as it pays:

Minimum balance	Gross†p.a.	AER*
£1+	2.75%	2.75%
£10,000+	2.85%	2.85%
£50,000+	2.90%	2.90%

This one can be applied for and managed online (but may require posting in ID/certified copies, or taking to a branch), it is also 16+

refluxer

@FussyPants01 There is a discussion thread on this topic here if you're interested... https://forums.moneysavingexpert.com/discussion/6407656/childrens-savings-accounts-discussion-area/p1

Band7

List of savings accounts open to 17 year olds: https://moneyfacts.co.uk/savings-accounts/childrens-savings-accounts/?quick-links-first=false&id=null&business-type=16&activity-type=null&investment-amount=1000&investment-type=1&account-types=32&interest-paid-frequencies=null&terms=null&account-opening-methods=null&account-management-methods=null&notice-periods=null&include-notice-period=true&include-term=true&age=17&has-withdrawal-restrictions=2&existing-customers-only=2&is-shariaa=2&joint-account-only=2

Bridlington1

ForumUser7 said:

refluxer said:

I would work your way down the MSE list here. As she is 17, she can open any one of those currently on the list apart from the Halifax Kids' Saver. Just be aware that most of the accounts can only be opened in branch or by post, so picking an account at a bank or building society who has a reasonably local branch is sensible if you want to avoid the current mess that is the Royal Mail.

HSBC is a good option - it pays 3.75% on savings up to £3000 and 1.25% on anything above that.

Opening a current account at the Nationwide would give her access to the Flex Instant Saver which pays 2.25%. This rate obviously isn't the best, but isn't too bad for a high-street bank/BS and could be a compromise for much larger amounts.

I've also just remembered that you can open a Ford Money Flexible Saver from aged 16 - this currently pays 2.65% AER so higher than the Nationwide and no need to open a current account. You can manage this both online and via the app. Withdrawals are generally same day or next day, depending on when the request is made.

https://www.ybs.co.uk/savings/product?id=YB681671W

YBS Internet Saver Plus Issue 13 might be a better option than the Ford Money, as it pays:

Minimum balance	Gross†p.a.	AER*
£1+	2.75%	2.75%
£10,000+	2.85%	2.85%
£50,000+	2.90%	2.90%

This one can be applied for and managed online (but may require posting in ID/certified copies, or taking to a branch), it is also 16+

Though the online rainy day account pays 3.35%, provided less than 2 withdrawals/yr are made (max £5k). See:
https://www.ybs.co.uk/savings/product?id=YB931629W

There's also the one day account at 3.3%. This is easy access but must be opened/managed in branch or by post. One advantage of this one over the others is that it will enable the child to get £100 off a YBS mortgage when the account matures. See:
https://www.ybs.co.uk/savings/product?id=ONEDAY

Both of these are better interest rate wise but have more restrictions than the account mentioned by @ForumUser7. 

spaniel101

(possibly shamelessly showing my age...)    Do YBS still do 'Passbooks' for accounts ? 

Bridlington1

spaniel101 said:

(possibly shamelessly showing my age...)    Do YBS still do 'Passbooks' for accounts ? 

They don't for online only accounts, but do for post/branch accounts.

So for the accounts mentioned above the internet saver issue 13 doesn't have a passbook, the one day account does and the rainy day saver has a passbook if you open it in branch/by post but does not if you open it online.

spaniel101

Bridlington1 said:

spaniel101 said:

(possibly shamelessly showing my age...)    Do YBS still do 'Passbooks' for accounts ? 

They don't for online only accounts, but do for post/branch accounts.

So for the accounts mentioned above the internet saver issue 13 doesn't have a passbook, the one day account does and the rainy day saver has a passbook if you open it in branch/by post but does not if you open it online.

Great info, very useful.  Many thanks Bridlington1 !