Savings Accounts or ISA for children that wont be given to them until 18 years old

littlezo

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

xylophone

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%. 

km1500

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 now

jimjames

Any JISA will not allow access until they are 18 but you might be limited by the annual limit if the payment was substantial.

Albermarle

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.

littlezo

Thanks everyone. @jimjames the payment was just under £2000. So don't think I would be limited?

jimjames

littlezo said:

Thanks everyone. @jimjames the payment was just under £2000. So don't think I would be limited?

No, that would be fine. It was more if the amount was in the tens of thousands