Halifax Childrens Regular Saver Account - What Happens @ age 16?

Speed

Hi Guys,

My sister is currently 15 and has a Liquid Gold account with the Halifax which has a rather poor 2.25% interest rate at the moment. I spotted that Halifax do a Childrens Regular Saver Account with a great 10% interest rate, the problem is she is nearly 16.

If she did open this account now, what would happen when she does turn 16 which is in 4 months time? Would she still get the 10% interest for 12 months or would she simply be moved to another account?

It does say in the terms "Available for children up to 16 only, but accounts can continue to the anniversary following the child's 16th birthday", but I'm not quite sure what that means in practical terms. Clarification would be great!

Many thanks,

Mark

YorkshireBoy

Account runs until the anniversary following the child's 16th birthday, and is automatically closed following transfer of balance + interest.


EDIT: I see you found the answer whilst I was posting.

Speed

Right ok, so it would be well worth doing then!

Indeed I did, but many thanks for the reply and clarification!

Energize

Remember that it's a regular savings account, you can only put a max of £100 in each month. You can't transfer the whole balance over at the start, so it may not be worth doing for the money you will get.

Speed

According to the Halifax website it's only £10 to £100 a month, but that's not a huge problem. It will still earn more interest after a few months than the Liquid Gold account!

Mikeyorks

Presumably she's being paid the special 'under 21' rate on the Liquid Gold? As it normally only returns 0.50% Gross!

But don't close it. Use it as the nominated account to accept the proceeds from the Reg Saver when the funds are swept out. As you may bump into age problems with the Save4it account (under 16) which is the normal one that people sweep the 10% account into.

But once the Regular Saver is age expired - ditch the Liquid Gold as quickly as possible. Martin's comparisons normally use it as the least desireable account on the market .. with valid reason!

Speed

Yes, I spotted 0.50% interest rate for Liquid Gold in "The Losing Account List." However like you say there is a special under 21 rate, which I found out about once I did some digging on the Halifax website.

Surely however she can nominate a non-Halifax account to put the funds and interest in once the Regular Saver has expired?

Mikeyorks

Speed wrote: »

Surely however she can nominate a non-Halifax account to put the funds and interest in once the Regular Saver has expired?

Not directly ... the 'nominated' account must be with Halifax. Hence my suggestion you leave the Liquid Gold in situ (but as empty as possible) .. but then kick it into touch as soon as her eligibility for the 10% rate finishes.

See the para immediately below the 4 x bullet points :-

http://www.halifax.co.uk/savings/childregularsaver.asp

When the year’s up, your savings and interest are swept into another Halifax savings account, which you choose when you open your Halifax Children’s Regular Saver.

Speed

Thanks for the heads up that's a great idea!

Speed

Just thought I'd point out that a Liquid Gold, child account or not cannot be used as the nominated account. We signed up and got a letter back to that effect, it says and I quote:

"Upon checking your application we can see that the nomination account details given on the application does not belong to a nominated account but to a liquid gold account"

Instead of phoning up and asking what we wanted to do like a "good" back we have to re-apply online, leaving the nomination account section blank as it gives them the authority to open a Save 4 It account! :rolleyes:

Robert_Hopkins

In regards the nominated account situation. Halifax have forgot to add the importance of not closing the nominated account in the terms and conditions. This means that you have to open a nominated account at the same time as the Regular Saver, however you probably need to open another account when your Regular Saver matures. When I opened my Regular Saver I had to open a Web Saver (which now pays derisory interset). However I closed this account with no problem and opened a Bank of Scotland Instant Access Savings Account which pays better interest and can be operated online with a cash card (in the Halifax terms and conditions it accepts this account as the nominated account.) Online on my regular saver account it still shows the old web saver account number which is now closed. So when June comes they will have to find another account to put the matured funds in. To open a Bank of Scotland Instant Access Savings Account (which accepts Instant internal transfers from Halifax accounts) and can be operated from the Halifax website once opened . To open one visit www.bankofscotland.co.uk. A £1 to open and you earn better rates than web saver. If you want a proper internet account open a Yorkshire Building Society Internet Saver (Cash card available ) alongside the bos account.