Savings accounts for nieces

Kevicho

Hi Peeps, I have 2 nieces aged 1 and 3, and now my debt is nearly sorted I want to set up some form of savings account so they have some money to start with when they reach 18 to pay for driving lessons, university or beer (ok well not beer).

I want to put in 10 pounds a month to start with, via DD, I may increase that amount in future, but that should be a decent start to their adult life anyways, so if anyone has any advice to maximize their savings, and not be taxed on this then that would be great.

Thanks

Kev

dizzie

Hi,

The Halifax Children's Regular savings account will allow you to pay in between £10 and £100 per month. The way it works is that it offers 10% interest fixed for a year (so if you pay in £10/month for 12 months (i.e £120)), it will earn £6 interest over the course of the year. After a year, the balance is swept into another children's savings account (usually the Save4it account) which I believe pays "a more normal" 5.5% interest.

But, as long as the Regular savings account is still going (and it has been going for quite a while now), you can continue to pay your £10 per month into it for the higher rate of interest again on the next year's contributions.

You can apply online, but then have to take some ID along to a branch. Make sure you fill in a tax exemption form at the same time (should be available in the branch), so that they dont take the normal 20% tax off the earned interest.

Hope this helps.

Kevicho

dizzie wrote: »

Hi,

The Halifax Children's Regular savings account will allow you to pay in between £10 and £100 per month. The way it works is that it offers 10% interest fixed for a year (so if you pay in £10/month for 12 months (i.e £120)), it will earn £6 interest over the course of the year. After a year, the balance is swept into another children's savings account (usually the Save4it account) which I believe pays "a more normal" 5.5% interest.

But, as long as the Regular savings account is still going (and it has been going for quite a while now), you can continue to pay your £10 per month into it for the higher rate of interest again on the next year's contributions.

You can apply online, but then have to take some ID along to a branch. Make sure you fill in a tax exemption form at the same time (should be available in the branch), so that they dont take the normal 20% tax off the earned interest.

Hope this helps.

Thanks this is most helpful will check up on it asap and set something up in next few weeks