Saving for 17 year old £400 a month where’s best?

Orangesunshine

My daughter is 17 year old apprentice.
She earns reasonably well- well better than my day. She’s volunteered that she can save £400 a month, however it would probably best that she can access this.

however saving rates for ‘children’ seem low. I can open an account or two in my name for her but keep finding limits on regular savings with best interest. 

The obvious one seem to be First direct with the switching bonus too but I did that for myself recently already.

Anything ideas? Or best to just trawl through and open two in my name for her. 

I bank with Lloyds but use the club account for my own savings.

Thanks!

lr1277

Assuming she has a current account, not all savings providers require their customers to be 18 or over.

Whilst not the best rate, I see Skipon Building Society have an EA account paying 3.3%.  To open it you need to be 16 or over. So a perhaps a case of looking around to see if there are other accounts for 17 year olds that pay better rates of interest.

Also you or your daughter need to decide if the savings are to be ina traditional bricks and mortar institution or one of the new fintechs.

Personally I keep my savings in a savings account even it is linked to the current account and even if it is at the same bank as the current account. This means I can transfer savings instantly should I need the money, especially if the savings account is at the same bank as the current account. Also there is not too much money sitting in my current account, which may be removed by fraudsters if you agree to a fraudster's requests.

Edited after re-reading original post.

Growingold

lr1277 said:

Assuming she has a current account, not all savings providers require their customers to be 18 or over.

Whilst not the best rate, I see Skipon Building Society have an EA account paying 3.3%.  To open it you need to be 16 or over. So a perhaps a case of looking around to see if there are other accounts for 17 year olds that pay better rates of interest.

Also you or your daughter need to decide if the savings are to be ina traditional bricks and mortar institution or one of the new fintechs.

Personally I keep my savings in a savings account even it is linked to the current account and even if it is at the same bank as the current account. This means I can transfer savings instantly should I need the money, especially if the savings account is at the same bank as the current account. Also there is not too much money sitting in my current account, which may be removed by fraudsters if you agree to a fraudster's requests.

Edited after re-reading original post.

YBS have a regular esaver (16yrs +) up to £250mth 2 withdrawals a year though can close. changing to 4.85% on 10/12.

EssexHebridean

I'd suggest that she splits the money - part into a Regular saver and ideally locked away, and part into an EA account with a reasonable rate of interest. it safeguards some of her savings from a "splurge" situation, but still leaves her with the ability to build an "emergency fund" too - a good life lesson. 

I take it you have already had the budgeting conversation and she is saving for big ticket clothing and shoe purchases, holidays and replacement tech etc on a monthly basis? 

lr1277

Talking about conversations to have, ensure your daughter is aware of the dangers of being a money mule (if you have not done so already). She might be sensible and know what not to do, but I would check.