Savings for Teen

molly28

My son is due to turn 16 and I have a modest amount of money saved for him to use towards a deposit for a property in the future.  Which is the best type of account to use to put this money into as I don't want him to have access to it until he needs it which I imagine is a fair way off at present?

Bigwheels1111

If Interest earned over £100, you take the tax hit from memory.

So an ISA maybe ?.

I just took out a Virgin 3y fixed rate ISA 5.2% today.

If they up the rate within 14 days I can move to the better rate.

Plus 120 interest fine to withdraw the funds.

Also if the ISA in your name only you gcan give him the money when you choose.

ForumUser7

molly28 said:

My son is due to turn 16 and I have a modest amount of money saved for him to use towards a deposit for a property in the future.  Which is the best type of account to use to put this money into as I don't want him to have access to it until he needs it which I imagine is a fair way off at present?

https://moneyfactscompare.co.uk/savings-accounts/childrens-savings-accounts/?quick-links-first=false

You can select 'Full Search' to apply filters, and 'type' to change to a regular saver for example if you wanted to look at that kind of product.

An ISA may well be a good idea, as stated by @bigwheels111. Your son could also hold a JISA at the same time - although he will have access once he turns 18. He will also likely have access to the funds in the link I attached, unless you choose a fixed rate bond which doesn't allow withdrawal (some, but not many at all, do)

Albermarle

A good way of saving for a first time property is via a LISA, due to the added 25% bonus.
However he can not open one until he is 18 and he will have full access . 
Lifetime ISA (LISA): how they work & best buys (moneysavingexpert.com)