Teenage Savings

smurfy

I have a "very soon to be 17" year old with about £10k saved up over her life with the intention to help her through University (and a 19 year old already there). Their money currently sits in a childrens savings account/ordinary savings account. They may need occassional access but hopefully(!) not on a regular basis. They're not earning (or only low part time amounts) so tax free seems sensible. Some money still goes into their accounts but the main object is to maximise interest on what they've got. Any suggestions?

:j

Lokolo

Are they planning on taking out the loan as well?

To be honest, as they don't pay tax just go for the account with the highest paying interest and fill in an R85 form to declare tax free savings.

I am doing the same being 19 but I have put mine in ISAs as I want to keep it for a few years after I graduate and am on tax status, but if the moneys for university and not for a future house deposit (thought of that?) then do the above

Rikki

Put the money into an ISA. £3000 this tax year and £3600 next tax year.(You can draw it out but not replace it.)

It also means the savings remain tax free if she decides to get a job.

smurfy

She is taking "the loan". To be honest it's "for their future" so what it ultimately gets used for is up to them...I'd just prefer it wasn't ALL on drink and fun!!

Lokolo

Yep so true. Well luckily for meeee my grandparents are loaded and have given me £5 a year to live off (inc accommodation etc.).

However, I still took the loan out and this year so far I have put £2800 in a savings account (I have been paid £2235 by student loans so far) so I have managed to save quite a bit but even though I pay interest on the loan I am getting more interest than am paying.

To be honest where you go really depends how much you need. I am in Staffordshire and the rent here is extremely cheap whereas I know Southampton, my friend pays almost double.

Should be ok to be honest, just make sure she gets a beating if she comes back asking for more money after first semester