Halifax regular saver 7.07% 16 years old tax free

weaver

Hi

Im new to this so please bear with me. This account is open to all over 16 years of age.

The halifax are offering a regular saver account with 7.07% interest for one year. This account can be opened by anyone over the age of 16. If your child is still in full time education they do not pay any tax (at least at the halifax they dont) until they are 17. They fill in form R85. (not sure if it applies if they have a job)

You can invest a regular monthly amount from 25.00 to 250.00. The catch being it has to be transferred from a current account (my daughter has money coming out of my current account, she then pays the money from her save 4 it account into my current account (long winded but thats the Halifaxs policies for you)

I think this is a good deal - you guys probably have a better one but this is better than the same amount going into an ISA. Ok you can only invest 250.00 a month but I think the interest rate is very good - if you have a 16 year old in full time education.

kierangray1982

yes thats true

regardless whether they are in full time eductation, if they earn over there allocated allowance then they will get charged tax, i did when i was 16

kg

Aark

Anyone can fill out a form R85 to receive interest without any tax deducted as long as your total income will be less than your personal tax allowance.

lipidicman

Remember that paying into an ISA may be better in the long run - as they will be tax payers soon - so use the allowance. Also, once in an ISA it can sit there for a few years at a good rate, not so with the Halifax.