Best saving account for 16 year old with 5k

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  • jwhitty456
    jwhitty456 Posts: 3 Newbie
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    sorry, I'm not sure what those abbreviations stand for.
  • MallyGirl
    MallyGirl Posts: 6,652 Senior Ambassador
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    HTB ISA is a Help to Buy ISA. you can get a 25% bonus on top of the interest paid (up to max £3k) if you use the money to buy a first home before 2030. Can make adhoc withdrawals.

    A LISA is a lifetime ISA - get immediate 25% boost on deposits but can only be used for house purchase or pension. Withdrawals subject to penalties that more than wipe out the 25% bonus.
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  • MallyGirl
    MallyGirl Posts: 6,652 Senior Ambassador
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    I am not going to commit my DD to a LISA - that is her choice to make. I will advise her to put some of her cash JISA into a HTB ISA when she hits 18.
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  • jwhitty456
    jwhitty456 Posts: 3 Newbie
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    I'm really just looking for a normal savings account, not a regular saver, isa or help to buy, I think im best to leave this till she is 18.
  • aj23_2
    aj23_2 Posts: 1,155 Forumite
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    MallyGirl wrote: »
    I am not going to commit my DD to a LISA - that is her choice to make. I will advise her to put some of her cash JISA into a HTB ISA when she hits 18.


    The better advice would be the LISA, it's for the same thing just no instant access and you'd get a lot more money. Can't even give money away now!
  • Alexland
    Alexland Posts: 9,668 Forumite
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    aj23 wrote: »
    Can't even give money away now!

    Making contributions into a LISA is not a no-brainier decision as there is a consequence greater than the bonus if the money is needed for other purposes. As such the suitability requires consideration. A parent would feel bad if they strong-armed their child into taking a LISA only to see them pay the withdrawal penalty later.

    HTB ISAs are simpler as the interest rate is good and there is no penalty to withdraw in the event the money is not used towards a qualifying property purchase.

    Alex
  • cloud_dog
    cloud_dog Posts: 6,061 Forumite
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    MallyGirl wrote: »
    A LISA is a lifetime ISA - get immediate 25% boost on deposits but can only be used for house purchase or pension. Withdrawals subject to penalties that more than wipe out the 25% bonus.
    Sorry to be pedantic but, it doesn't need to be used for a pension, it becomes available to use for retirement (or anything else you want) at age 60.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • xylophone
    xylophone Posts: 44,557 Forumite
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    Does she have a Child Trust Fund or a Junior Individual Savings Account?

    https://moneyweek.com/440381/do-you-have-a-lost-child-trust-fund/

    https://forums.moneysavingexpert.com/showthread.php?t=5949994

    post 2
  • MallyGirl
    MallyGirl Posts: 6,652 Senior Ambassador
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    jwhitty456 wrote: »
    I'm really just looking for a normal savings account, not a regular saver, isa or help to buy, I think im best to leave this till she is 18.

    If it will be hers at 18 then a cash Junior ISA will give reasonable rates - like Halifax at 3% but I am sure there are others. No withdrawals permitted so it will be safe. It will be hers at 18 and she can do what she wants with it then.

    On the other hand, 3% of £5k is only £150 per year interest so maybe it is not worth the effort?
    I’m a Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
    All views are my own and not the official line of MoneySavingExpert.
  • cloud_dog
    cloud_dog Posts: 6,061 Forumite
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    MallyGirl wrote: »
    If it will be hers at 18 then a cash Junior ISA will give reasonable rates - like Halifax at 3% but I am sure there are others. No withdrawals permitted so it will be safe. It will be hers at 18 and she can do what she wants with it then.
    Ummm, feel like I'm picking on you :o (sorry) but, a Junior ISA (cash or otherwise) will not be available to an 18 year old; they will have to utilise adult accounts. Or, did you mean up to age 18 use a JISA????
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
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