Children's savings account needed any ideas?

llydaw

Both my childrens savings are in the Halifax, there is £2k for one child and £1.5k for the other. The Halifax account pays the interest annually and I had to drip feed in monthly, sorry can't remember the annual interest rate but it wasn't bad. This rate expires in June and I can never find a savings account for them with a decent rate. I'm happy to drip feed around £25-£50 into them each. Any ideas? Your help very much appreciated.

Mikeyorks

Article to look at here :-

http://www.moneysavingexpert.com/savings/child-savings-tax-free

If you're drip feeding new money via the Halifax 10% Regular saver - you're not going to get any better. But a bit unsure how it 'expires in June' .... as the same rate has continued into the next year ever since they set up the Children's RS (3 or 4 years ago?).

Problem is where to put it after it's matured each year? Have a look at the article for that .. but you may not currently do much better than the Save4it account that you probably have now?

If you don't use your own ISAs? Could be a useful last resort for their funds?

llydaw

It's currently in the save 4 it account. I've had a quick look under the kids section and see this is there, just wondered if there was anything better. Halifax advised me that the save for it was better than the 10% children's account, can't remember why now though

martinman3

If you want instant access there is currently not much difference in rates between the Save4It you already have and the other top accounts.

There are other options if you don't need access to the money for 12/24 months.

Yorkshire Building Society have the Treasure Bond currently paying 6.30% AER fixed for the next 12 months.
http://www.ybs.co.uk/savings/future/treasure/index.jsp

Leeds Building Society have the Inflation Buster Bond which is linked to the RPI inflation rate paying RPI+2.5% for the next 2 years. This can be opened in trust and the interest paid gross.
http://www.leedsbuildingsociety.co.uk/savings/inflation_buster_bond.html

It is likely that interest rates will be rising from now on so you should regularly check these and any other bonds that can be opened in trust.

Widevista

:hello:Hi I'm new to the forum having used MSE as the starting point for researching child savings options, so bear with me:think:.

My Ex and I are making the most of investing in my daughters CTF but my father and I both have a lump sum of £1250 to invest as well this year. I have no experience in stock market investments and am therefore drawn towards conventional savings products but in the process of finding out more about alternatives.

:idea:As things stand I am looking at us both investing the £1250 in trust in separate child savings accounts and to drip feed £1200 into a Halifax Childrens Regular Saving Account (HCRSA) over the next year for the 10% rate. At the end of the year I'll review and possibly look to recycle through HCRSA if it's still available whilst moving the surplus into my daughter's CTF. In theory this looks tax efficient because we can apply for tax exemption on her accounts using HMRC's R85 form as the total balance of her accounts held in each trustee's name should remain below the £1800 figure widely quoted to generate less than £100 interest (i.e. the cut off point for the parents tax rate kicking in).

Ideally, if I go down this route, then I'd like to set it running automatically, particularly the drip feed from the child saving account to the HCRSA to minimise the work involved and to ensure eligibility for the 10% rate.

If you have managed to stay with me this far, can anyone offer any advice on the following:

Is it possible to set up a Standing Order from a child savings account or any savings account for that matter? If so which ones?

Is this idea as tax efficient as I think it is?

Am I barking up the wrong tree?:think:
Would I be better off looking at other long term investment products? If so then where would you direct my search?

Cor blimey............that was heavy going!!! :j