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Cash savings for a 16 year old?
florabritannica
Posts: 3 Newbie
The NISA allowance has been used, locked away for a few years, so it has reasonable interest and becomes accessible part way through uni. But there is still about £10K to put ... somewhere. I keep looking at promising things only to find a minimum age limit of 18.
Anyone know where I can put this for two years? Or even one and maybe I could look at interest rates and NISAs again next year. All the government loans will be taken for uni, unless something changes between now and then, but since the maintenance loan doesn't even cover accommodation for son no.1, these savings are to ensure that interesting and useful summer placements can be taken, instead of student-debt-clearing drudgery. So it's short-medium term I'm looking for, but instant access is not needed.
I would LOVE to find something simple where I can just pay it in and go for two years, but I'm prepared to do complex drip feeds if necessary. Just fed up of seeing "18" part way into application procedures. And yeah, I could do it in my name - he'd be fine with that - but he can fill out a tax-exempt form, and I can't! So anyone else's experience or knowledge would be very much appreciated.
Anyone know where I can put this for two years? Or even one and maybe I could look at interest rates and NISAs again next year. All the government loans will be taken for uni, unless something changes between now and then, but since the maintenance loan doesn't even cover accommodation for son no.1, these savings are to ensure that interesting and useful summer placements can be taken, instead of student-debt-clearing drudgery. So it's short-medium term I'm looking for, but instant access is not needed.
I would LOVE to find something simple where I can just pay it in and go for two years, but I'm prepared to do complex drip feeds if necessary. Just fed up of seeing "18" part way into application procedures. And yeah, I could do it in my name - he'd be fine with that - but he can fill out a tax-exempt form, and I can't! So anyone else's experience or knowledge would be very much appreciated.
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Comments
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A 16 year old can have both, a JISA (£4K) and a cash ISA (£15K), although the latter will pay terrible interest.
Your son could try the multiple current account game, with junior accounts, such as the
Santander 123 mini, 2.96% gross up to £2K
TSB Young Person account, 2.47% gross up to £2,500
Lloyds Young Person account, 2.47% gross to £2,500
There are also a bunch of children's regular savers that might be suitable: https://forums.moneysavingexpert.com/discussion/comment/6932895#Comment_6932895
Plus, of course, normal children's savings accounts - but you can look those up as well as I can, and it's your son...which begs the Q, why is he not searching for them?0 -
Is the NISA in your son's name? Did you/his father provide the money?
If so see http://www.hmrc.gov.uk/isa/faqs.htm#12
"Can I put money into an ISA for my child?"
The Halifax offers 4% cash JISA - this is tax exempt for you and your child. http://www.halifax.co.uk/isas/cash-isas/junior-cash-isa/
Bear the "£100 rule" in mind for gifts outside tax privileged schemes like JISA.0 -
Archi_Bald wrote: »A 16 year old can have both, a JISA (£4K) and a cash ISA (£15K), although the latter will pay terrible interest.
Ah, I had COMPLETELY missed that, somehow thought it was adult after 16. Actually, I thought that because someone in a Halifax branch told me I couldn't open their one when he was 16. Never trust the bank staff.Archi_Bald wrote: »Your son could try the multiple current account game, with junior accounts, such as the
...
There are also a bunch of children's regular savers that might be suitable:
Clearly I am rubbish at searching. I did try googling on banks, and searching the forums here before asking, honest - I guess at 16 I'm no longer thinking child (the Children's Bonds had to be cashed in etc at 16), so my search terms were probably all wrong.Archi_Bald wrote: »Plus, of course, normal children's savings accounts - but you can look those up as well as I can, and it's your son...which begs the Q, why is he not searching for them?
Because he is currently saying "don't know why I'm doing A levels, could have arranged an apprenticeship" etc in a dark fit of panic at AS levels, that I'm sure will pass but I am not wanting to draw attention, just at this moment, to the money that is sitting here in his name! He's very good at earning and saving and handling up to several hundred pounds at a time, but this amount ... not yet. He kind of knows it's there, but we're not talking about just how much it is or that he could actually just take it all now he's 16.
Thanks for the pointers, I will start afresh in new directions!0 -
Is the NISA in your son's name? Did you/his father provide the money?
If so see
"Can I put money into an ISA for my child?"
The Halifax offers 4% cash JISA - this is tax exempt for you and your child.
Bear the "£100 rule" in mind for gifts outside tax privileged schemes like JISA.
OK as far as HMRC, mostly from grandparents. Good point though, I'd love to throw out the tons of old paperwork, but I guess I need to keep it to prove that!
I'm pretty sure that was the Halifax account they said he couldn't have a few months back "because he turns 16 next month". Maybe the person who said it was locked into a pattern because we were closing down some other childhood accounts at the time. I will check it out, thanks!0
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