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Savings Accounts or ISA for children that wont be given to them until 18 years old
littlezo
Posts: 2 Newbie
Hi. My 9 year old has some money in a young savers account which the interest is at 3.11%
She cant touch the money until she is 18 as its from a car accident and that was the rulings set in court.
I know I can get her a higher interest rates atm than what shes getting now but I can't work out from researching if I'm better putting it into an isa or just a normal savings account. Im getting confused with the part I read re her potentially getting taxed?
No other money will be going in to the account so as not to confuse things. it is just the payout money and then whatever interest she earns on that over the years until she is 18. Also It has to be in her name the account.
Thanks
She cant touch the money until she is 18 as its from a car accident and that was the rulings set in court.
I know I can get her a higher interest rates atm than what shes getting now but I can't work out from researching if I'm better putting it into an isa or just a normal savings account. Im getting confused with the part I read re her potentially getting taxed?
No other money will be going in to the account so as not to confuse things. it is just the payout money and then whatever interest she earns on that over the years until she is 18. Also It has to be in her name the account.
Thanks
0
Comments
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If the only stipulation is that she cannot access the money until she reaches the age of 18, then a Junior ISA could be suitable.
Unless she is eligible for a Beverley BS or Bath BS JISA account, Coventry BS is currently offering the best rate (4.95%). Up to £9000 could be deposited in this tax year).
The Yorkshire BS One Day child account offers 4.55%.
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whatever interest rate you get it is likely that inflation will eat away at it in a savings account so it will probably be worth considerably less when the child is 18 than it is now0
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Any JISA will not allow access until they are 18 but you might be limited by the annual limit if the payment was substantial.Remember the saying: if it looks too good to be true it almost certainly is.0
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These are links to Stocks and shares JISA's
Junior ISA | Invest in a Junior Stocks and Shares ISA | Fidelity
Junior ISA | Hargreaves Lansdown (hl.co.uk)
Over 9 years investments would normally be expected to outperform savings and at least keep up with inflation.
Or a mixture of savings and investments would also be a suggestion.
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