Halifax Childrens Accounts

Alison_B

We have got an account for our children with the Halifax and aim to invest £10 each per month to put aside for when they are older. Now, I have just been looking at their website and they have got an account that is called Halifax Children's Regular Saver 10.00% AER/gross p.a. The criteria is that you can save between £10 and £100 per month via Standing Order and you get this interest for 1 year then your money is transferred into another account and the interest is reset for the following year.

Now, we can only afford to give the kids £10 savings each per month and the interest wouldn't be that great for the year, but would there be anything stopping us from withdrawing £90 per month from their general accounts and re-cycling it along with our £10 to make it up to £100 per month to put into their higher interest account to enable them to get the best interest?

grumbler

Alison_B wrote:

...would there be anything stopping us ...?

A lot of people use these accounts for their (not children's) savings and nothing can stop you. Even more: 2 adults with 2 children can open 2*2=4 accounts.
See Regular Saver link in the blew box above.

Also: Halifax 10% Regular Savings Account and Halifax Children's Saver - Interest taxable? threads.

realaledrinker

Two things to consider.

1. There are restrictions on how much interest overall (£120 pa) can be earned on money you have paid into your childrens' accounts before the Inland Revenue deem it to be your own interest.

2. The Halifax have major systems problems with the Regular Saver Accounts. For the sake of a few quid per annum extra interest, and having suffered major grief & stress trying to get them to sort problems out, it simply isn't worth it. Trust me.