Savings for Twins

threlfaw

My wife and I have been saving for our twin boys since they were born and they have almost £30k each in savings. We've not been happy with the interest they have been getting over the years and would like to move the money somewhere else where it may earn more than it is at current.
Can anyone recommend the best way to do this, it would probably be for at least another couple of years till they are 18 and probably onwards after this. It would need to be accessible once they go to University but ideally still sit in the account.

MX5huggy

Where is it at the moment? In individual accounts in each of their names. 

threlfaw

Thy are currently in their own Halifax savings account but I have full control over them.

xylophone

Thy are currently in their own Halifax savings account but I have full control over them.

Are you aware of the £100 rule in respect of income generated on capital provided to unmarried minors by their parents?

https://www.gov.uk/savings-for-children#:~:text=There's usually no tax to,their own Personal Savings Allowance.

threlfaw

xylophone said:

Thy are currently in their own Halifax savings account but I have full control over them.

Are you aware of the £100 rule in respect of income generated on capital provided to unmarried minors by their parents?

https://www.gov.uk/savings-for-children#:~:text=There's usually no tax to,their own Personal Savings Allowance.

They haven't receive it yet and probably wont as it will be drip fed to them

Albermarle

threlfaw said:

Thy are currently in their own Halifax savings account but I have full control over them.

As soon as they are 18 it is legally theirs and you will have no control ( not directly anyway) .
The bank will start contacting them directly. 

threlfaw

Albermarle said:

threlfaw said:

Thy are currently in their own Halifax savings account but I have full control over them.

As soon as they are 18 it is legally theirs and you will have no control ( not directly anyway) .
The bank will start contacting them directly. 

No, it’s in my name, not in theirs. I’m able to do what I want with it.

MX5huggy

It’s either in their own accounts in their name and the money is theirs and they should be paying tax (for years)  or it is in accounts in your name and you have been paying tax it can’t be in an account in their name and not pay tax and it’s not their money. 

wmb194

threlfaw said:

Albermarle said:

threlfaw said:

Thy are currently in their own Halifax savings account but I have full control over them.

As soon as they are 18 it is legally theirs and you will have no control ( not directly anyway) .
The bank will start contacting them directly. 

No, it’s in my name, not in theirs. I’m able to do what I want with it.

Well if it's your money but you've just earmarked it to them you can pick anything you like.

https://moneyfactscompare.co.uk/savings-accounts/

xylophone

They haven't receive it yet and probably wont as it will be drip fed to them

But you said

Thy are currently in their own Halifax savings account 

https://www.halifax.co.uk/savings/kids.html

Children’s accounts, apart from Junior ISAs, are not tax free. It’s a common misconception that children don’t need to pay tax on their savings, but they do – just like adults.

Children may have a Personal Savings Allowance. The first £1,000 of overall savings income earned by basic rate taxpayers will be free from income tax, the first £500 for higher rate taxpayers, and there is no allowance for additional rate taxpayers. Depending on personal circumstances, you may need to pay tax on the interest earned and it will be your responsibility to pay any tax owed to HM Revenue & Customs (HMRC). 

If a parent (including civil partner and stepparent) gifts money to their child and the interest from it is more than £100 a year, then that interest counts towards the parent’s personal savings allowance. It may be taxable depending on the parent’s personal circumstances.

This also applies if the interest on the gift, added to any interest we’ve already paid, makes a gross interest payment of over £100. This £100 threshold applies to each parent individually. All accounts a parent holds for the child (regardless of whether they are held with the same bank or building society) are considered. The £100 rule does not apply to parental contributions to a Junior ISA. 

Are the accounts children's accounts on which you are named bare Trustee?  You/your wife gave the money on which the 

interest accrues?

If so, the money and the interest belong to the children BUT while they are unmarried minors, the interest is taxable as yours as above. .

If the account(s) is/are in your sole name, then the money is yours to do with as you wish and  capital and interest belong to you and always taxable as yours.