18 Year Old refused savings account

Alex.T

Might I suggest an account switch to Santander Edge? Wages paid into that, two direct debits (phone and tv package for example - if he pays them), earning him 1% on the direct debits then this should allow him to open an Edge 7% regular saver. Put £4k into that, and then put the interest and the remaining £1000 into something else interest bearing, or keep in current account for everyday spends. As far as I’m aware Santander will do elec checks, and revert to manual if unable to do so due to age.

As he gets older, he can then use the account more to his benefit. Cashback, further direct debits etc.  

Emmia

Alex.T said:

Might I suggest an account switch to Santander Edge? Wages paid into that, two direct debits (phone and tv package for example - if he pays them), earning him 1% on the direct debits then this should allow him to open an Edge 7% regular saver. Put £4k into that, and then put the interest and the remaining £1000 into something else interest bearing, or keep in current account for everyday spends. As far as I’m aware Santander will do elec checks, and revert to manual if unable to do so due to age.

As he gets older, he can then use the account more to his benefit. Cashback, further direct debits etc.  

And he will need to pay the £3 a month fee... pass a hard credit check (which has already been an issue for Cahoot). 

Yes, the rates are good (especially with the 12 month bonus)... but he's also 18, possibly soon to open a student account if he goes to Uni.

Nardy

Naomim said:

Hi All,

My son recently turned 18. He has an old kids savers account with Halifax earning about 1.45%. Currently has almost £5k in there.

I wanted him to open a new Cahoot savings account to move his funds into but it was refused. I'm assuming as he has no real credit history. He has a metro bank current that his wages go into. I really don't want to encourage him to get a credit card to build history as he's not great with his money (despite my trying to help him budget).

How is he able to get a better interest savings account?

What are your son's views?

wmb194

Emmia said:

Alex.T said:

Might I suggest an account switch to Santander Edge? Wages paid into that, two direct debits (phone and tv package for example - if he pays them), earning him 1% on the direct debits then this should allow him to open an Edge 7% regular saver. Put £4k into that, and then put the interest and the remaining £1000 into something else interest bearing, or keep in current account for everyday spends. As far as I’m aware Santander will do elec checks, and revert to manual if unable to do so due to age.

As he gets older, he can then use the account more to his benefit. Cashback, further direct debits etc.  

And he will need to pay the £3 a month fee... pass a hard credit check (which has already been an issue for Cahoot). 

Yes, the rates are good (especially with the 12 month bonus)... but he's also 18, possibly soon to open a student account if he goes to Uni.

You only pay the fee if you add two or more direct debits.

xylophone

Santander also offering a 5.2% easy access saver for new and existing customers.

https://www.proactiveinvestors.co.uk/companies/news/1025386/santander-shakes-up-easy-access-savings-with-highest-rate-in-14-years-1025386.html

The Everyday current account has no fees.

Naomim

Nardy said:

Naomim said:

Hi All,

My son recently turned 18. He has an old kids savers account with Halifax earning about 1.45%. Currently has almost £5k in there.

I wanted him to open a new Cahoot savings account to move his funds into but it was refused. I'm assuming as he has no real credit history. He has a metro bank current that his wages go into. I really don't want to encourage him to get a credit card to build history as he's not great with his money (despite my trying to help him budget).

How is he able to get a better interest savings account?

What are your son's views?

He's all for getting a new savings account for higher interest.