Best savings account for children.

bluestaff

Hi was just wondering if anyone could help. I have three young adults coming up to 17yrs 16yrs and 15 yrs. They have savings of £600 each could anyone advise best savings account. thankyou

martinman3

As you say they are young adults and they can open mini cash ISAs if they are older than 16 or very soon will be.
If the oldest were to open a child account now, with one of the few organisations which allow the account holder to be older than 16, not only would they need to fill in a tax return or a tax claimback form to receive the interest tax-free but also the account would be transferred to an adult one in the very near future. Also, if they had a job and earned enough the interest would be taxed. Put it in a ISA now and the tax-free status will remain indefinitely.
The youngest will need to open a child account for about a year and then transfer it to an ISA.
You will need to decide for the middle child, whether to open a child account and transfer later, or wait until 16 and open an ISA. Depending on where the money is at the moment it may be simpler to wait as any interest lost may be negligible.

My personal favourite child account is YBS One Day/Freedom account.
As far as the choice of ISA, look in the ISA sub-forum at the best ISAs thread
http://forums.moneysavingexpert.com/showthread.html?t=401374
They have the option of choosing fixed rate ISAs instead of variable rate.