cash ISA for 16yr old

tiamaria

Hi, can anyone recommend the best cash ISA & current account for my son?

He's just turned 16, has about £1200 atm and should receive something between 2k & 4k later in the year, very unsure of the amount right now (I realise he can only invest £3600 in the tax year).

Abbey say they can offer him 6% on a current account and an ISA, Halifax offer 6.5% ISA.

I also want to make sure it's an account where he's not limited to one payment in per year.

TIA

Baldur

Alliance & Leicester's Premier 21 Account looks quite useful for someone of your son's age.

Tozer

Premier 21 Account looks good. However, he must be working to open it. Is he working? If he is a non-taxpayer, is there a particular reason why you want an ISA?

Baldur

Tozer wrote: »

Premier 21 Account looks good. However, he must be working to open it.

Not according to the A & L website - "Pay in your earnings. This could be your wages, allowances or other regular money you may receive."

Tozer

True enough. However, here http://www.alliance-leicester.co.uk/currentaccounts/index.asp?page=home&ct=primarymenu

It says: "If you are working...."

Baldur

Tozer wrote: »

True enough. However, here http://www.alliance-leicester.co.uk/currentaccounts/index.asp?page=home&ct=primarymenu

It says: "If you are working...."

It does, but no such requirement is shown in the Ts & Cs, it certainly looks worth investigating, they can only say no.

fagun

tiamaria wrote: »

Hi, can anyone recommend the best cash ISA & current account for my son?

He's just turned 16, has about £1200 atm and should receive something between 2k & 4k later in the year, very unsure of the amount right now (I realise he can only invest £3600 in the tax year).

Abbey say they can offer him 6% on a current account and an ISA, Halifax offer 6.5% ISA.

I also want to make sure it's an account where he's not limited to one payment in per year.

TIA

Do you want ISA and current account at the same institution? If so, why?

Go for the current best buy for Cash ISA and a suitably convenient current account.

tiamaria

Hi, thanks for the replies, the A&L looks interesting though I notice the rate goes down rapidly after the first 1k! Still £100 a year isn't bad for £1000. Our nearest branch is 10 miles away though which could be a problem.

He isn't working but will be looking as soon as exams are over, he will be going to college & may be getting some EMA so will need a bank account.

No, he doesn't necessarily have to have current and ISA account in the same place, obviously all the BS & Banks promote their own so it's hard to take them at face value.

BruceyBonus

National Counties Building Society have a nice ISA at 6.26% if he doesn't mind operating his account by post, online or by phone. They are incredibly helpful on the phone and had my account setup in less than 6 days (I applied by post)!

tiamaria

Ok so here's where I ask an incredibly stupid question:o

How can you pay in cash and more importantly how do you get it out if it's all online?

ATM on front of PC tower?:rotfl: (sorry)

BruceyBonus

tiamaria wrote: »

Ok so here's where I ask an incredibly stupid question:o

How can you pay in cash and more importantly how do you get it out if it's all online?

ATM on front of PC tower?:rotfl: (sorry)

Depends on the company. Some will setup a direct debit from your current account - you then request that they transfer the money to your online account. Some will accept a payment by debit card online. Others will take a cheque in the post.

As for withdrawing money, it can be done by bank transfer to your current account. Some may also offer a cheque sent in the post or give you an ATM card.