Confused about child savings account

mark_cycling00

Thanks. 
 
I looked into bare trusts briefly and it looked like it needed £1000+ legal costs for initial setup to gain £6000pa capital gains allowance from child.

Not sure we're quite at that level of investment, unless I misunderstood it all

wmb194

mark_cycling00 said:

Thanks. 
 
I looked into bare trusts briefly and it looked like it needed £1000+ legal costs for initial setup to gain £6000pa capital gains allowance from child.

Not sure we're quite at that level of investment, unless I misunderstood it all

You’ve misunderstood something. Simple children’s savings accounts are bare trusts and cost nothing.

pridehappy

Halifax kid's savings accounts are relatively competitive for major banks and can be easily opened online. When opening one for my child, I only had to provide my bank account details (the adult). However, it isn't a fixed term apart from the 1 year Monthly Saver of up to £100 per month but would still be an option if it's easier to organise.

Kids' Saver Account | Savings | Halifax
Kids' Monthly Saver Account | Savings | Halifax

xylophone

unless I misunderstood it all

You've misunderstood - a savings account managed by you but in the sole name of your infant child is held in bare trust.

Keep a note that the capital has not been provided by you or your wife (only relevant if outside JISA).

https://www.which.co.uk/money/savings-and-isas/savings-accounts/childrens-savings-accounts/children-and-income-tax-aK3586V9ocjp