Best Savings for Children

daisyblue_2

Hi all,

I hope l don't sound too thick here but l've got a question or two.

Firstly, we opened a Childrens Regular Saver and Save 4 it account last year for my son - swayed by the 10% interest promise...

We saved £800 for him this first year and the interest came in at £40 l've questioned this and requested a breakdown of interest which l've received but l can't make the interest come to the same as their '10%' I've now been told it's AER interest and although l'm very good at sums and finance l can't get my head round it :embarasse

I'm only interested in the nett amounts l guess - regardless of how it's worked out we've ended up with 5% and that's that. :mad:

Secondly, where do we put his money this year we've probably got the same amount again? Don't think l'm lazy with this second question - l'm still researching where to put it also but ask here for speed!

Thanks
d x

FiscalFanny

Hi Daisy

I've just opened the same accounts for my kids. What you need to consider is that is a regular saver therefore if you had £800 at the end of the year you will have started with nil, as the max monthly payments are £100, therefore the average balance was £400 getting 10% which is £40.