Savings for teen earner

Mammacazza · 16 January at 9:16PM

My 16 year old daughter has left school and now has a job on a casual basis but which for now is earning her around £500 per month. She's keen to lock some away to avoid frittering it - say £300 per month. That's more than your average kids' savings account allows and I'm having trouble finding one for under 18s that allows her to deposit that much. To make it trickier, she doesn't want an easy access account as that's too tempting, but not sold on locking it away for as long as a year as she might want to use it! 😆 Any suggestions?

Archerychick · 16 January at 9:28PM

This is a good place to start https://moneyfactscompare.co.uk/savings-accounts/childrens-savings-accounts/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate

I can see some notice accounts but the interest rate isn’t that appealing.

It does look like some regular savers are for those aged 16+, which look better than the children accounts, for example Furness RS https://moneyfactscompare.co.uk/savings-accounts/regular-savings-accounts/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate&id=null&business-type=16&activity-type=null&investment-amount=500&investment-type=2&account-types=16&interest-paid-frequencies=null&terms=null&account-opening-methods=null&account-management-methods=null&notice-periods=null&include-notice-period=true&include-term=true&age=21&has-withdrawal-restrictions=2&existing-customers-only=2&is-shariaa=2&joint-account-only=2

Archerychick · 16 January at 9:35PM

You can also find a list of regular savers with details like age on this thread https://forums.moneysavingexpert.com/discussion/6576962/the-top-regular-savers-discussion-thread/p1

Mammacazza · 16 January at 10:43PM

Archerychick said:

You can also find a list of regular savers with details like age on this thread https://forums.moneysavingexpert.com/discussion/6576962/the-top-regular-savers-discussion-thread/p1

Super helpful, thanks so much!

DullGreyGuy · 16 January at 11:21PM

Mammacazza said:

My 16 year old daughter has left school and now has a job on a casual basis but which for now is earning her around £500 per month. She's keen to lock some away to avoid frittering it - say £300 per month. That's more than your average kids' savings account allows and I'm having trouble finding one for under 18s that allows her to deposit that much. To make it trickier, she doesn't want an easy access account as that's too tempting, but not sold on locking it away for as long as a year as she might want to use it! 😆 Any suggestions?

Is this your wish or hers?

Plenty of banks offer things aimed at teens which will allow deposits of that size and more, certainly when I was a teen (mid 90s) was getting more than that in pay and was just paid into my bank.

No account prevents you from taking money out, just term accounts will penalise you from taking it out early. My solution was to use an old building society account that had a passbook and no card so the only way to spend was to go in branch. Wasnt a guarantee but stopped the more impulsive purchases and certainly the withdrawals at 1am to go to the nightclub.

Doubt such archaic accounts still exist but you can destroy the debit card (or give it to you), not have the app on your phone etc. Assuming your not on anything means tested then similarly they could give you the money for safe keeping thus require your "permission" for withdrawal (a fair few friends had to pay rent at home and then got given it back at a later stage in life which is similar)