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    • Smudger78
    • By Smudger78 28th Jun 18, 8:16 AM
    • 139 Posts
    • 12 Thanks
    Smudger78
    Joint Account for four people?
    Hi,

    Can anyone advise of any basic joint accounts that allow four people to be named on the account? Have been having a look around and read that Natwest do one but can't find anything?

    Thanks!
    • zebedy
    • By zebedy 26th Jul 18, 5:39 PM
    • 414 Posts
    • 517 Thanks
    zebedy
    Sad to see that Halifax reward account is dropping the monthly reward from £3/month down to £2 a got the letter today. Barely worth it now
    MFW2015 number 101,
    target OP £5000, so far have OP'd £2250
    ---------
    Make Do, Mend and Minimise member - focussing on upcycling/repurposing and sewing
    • Mumtomany
    • By Mumtomany 6th Aug 18, 6:40 PM
    • 10 Posts
    • 8 Thanks
    Mumtomany
    Not sure if tho is the right area to discuss kids accounts so please forgive me if itís wrong. Basically, I have 3 savings accounts, theyíre used for my children as itís money I save for them but itís accessed by myself for items that they may need. Eg one child has a medical condition and we self fund some equipment, so we access the account when the next payment is due (every 2 to 3 months). At the moment their money is sitting in savings accounts linked to my Santander 123 account. I like the simplicity of moving money between accounts when required but Iím also mindful that theyíre not getting a great interest rate but also the accounts are in my name rather than theirs which can look as if I have more than I actually do but I also need control.

    Is this the best option? Stick with what Iím doing or is there a better way?

    Thanks
    • ValiantSon
    • By ValiantSon 6th Aug 18, 8:00 PM
    • 2,469 Posts
    • 2,380 Thanks
    ValiantSon
    Not sure if tho is the right area to discuss kids accounts so please forgive me if itís wrong. Basically, I have 3 savings accounts, theyíre used for my children as itís money I save for them but itís accessed by myself for items that they may need. Eg one child has a medical condition and we self fund some equipment, so we access the account when the next payment is due (every 2 to 3 months). At the moment their money is sitting in savings accounts linked to my Santander 123 account. I like the simplicity of moving money between accounts when required but Iím also mindful that theyíre not getting a great interest rate but also the accounts are in my name rather than theirs which can look as if I have more than I actually do but I also need control.

    Is this the best option? Stick with what Iím doing or is there a better way?

    Thanks
    Originally posted by Mumtomany
    Why not just open three savings accounts in your ow name, but with a different bank to get the best interest rate? For ease of opening, and full easy access, Tesco's Internet Saver may well do. It pays 1.34%. Coventry Building Society have a rate of 1.4%, but limited withdrawals and Birmingham Midshires have a 1.35% rate, but their account opening procedures belong in the dark ages. All of these accounts include a one year interest rate bonus, so you need to make a note in your diary to review it after a year (or sooner if better rates become available elsewhere).

    There is no difficulty in managing the Tesco account online. You can easily move money in and out of it to your Santander account via faster payments.

    Of course, if you are still topping these accounts up on a regular basis, then why not make the regular contributions into a regular saver, where you can earn more interest and then divide the matured sum (12 months later) between the three easy access accounts. If you are saving upto £200 per month in total for them, and have a Santander 123 or 123 Lite account, then you can get 5% in a regular saver. If your Santander account isn't 123, you can still get 3% from them. Even better, if you won't maximise the deposit o £200 with the regular contributions, then you could do so by adding funds from the existing savings, so as to get the very best return.
    • Steve_xx
    • By Steve_xx 6th Aug 18, 8:49 PM
    • 6,554 Posts
    • 2,741 Thanks
    Steve_xx
    Why not just open three savings accounts in your ow name, but with a different bank to get the best interest rate? For ease of opening, and full easy access, Tesco's Internet Saver may well do. It pays 1.34%. Coventry Building Society have a rate of 1.4%, but limited withdrawals and Birmingham Midshires have a 1.35% rate, but their account opening procedures belong in the dark ages. All of these accounts include a one year interest rate bonus, so you need to make a note in your diary to review it after a year (or sooner if better rates become available elsewhere).

    There is no difficulty in managing the Tesco account online. You can easily move money in and out of it to your Santander account via faster payments.

    Of course, if you are still topping these accounts up on a regular basis, then why not make the regular contributions into a regular saver, where you can earn more interest and then divide the matured sum (12 months later) between the three easy access accounts. If you are saving upto £200 per month in total for them, and have a Santander 123 or 123 Lite account, then you can get 5% in a regular saver. If your Santander account isn't 123, you can still get 3% from them. Even better, if you won't maximise the deposit o £200 with the regular contributions, then you could do so by adding funds from the existing savings, so as to get the very best return.
    Originally posted by ValiantSon
    But be careful about opening accounts for children in your own name. Especially if you are likely to breach the tax-free allowance on those savings!
    • ValiantSon
    • By ValiantSon 7th Aug 18, 12:30 AM
    • 2,469 Posts
    • 2,380 Thanks
    ValiantSon
    But be careful about opening accounts for children in your own name. Especially if you are likely to breach the tax-free allowance on those savings!
    Originally posted by Steve_xx
    Why do you need to be careful? You are entitled to have as many accounts in your name as you wish.

    The OP is already using accounts in their own name, so I doubt they are worried about tax, and assuming they are a basic rate tax payer they have a £1,000 interest allowance. You have to have a lot of savings to breach that allowance, and even if you do you still earn interest, but pay 20% tax on the amount above £1,000.
    • Steve_xx
    • By Steve_xx 7th Aug 18, 12:48 AM
    • 6,554 Posts
    • 2,741 Thanks
    Steve_xx
    Why do you need to be careful? You are entitled to have as many accounts in your name as you wish.

    The OP is already using accounts in their own name, so I doubt they are worried about tax, and assuming they are a basic rate tax payer they have a £1,000 interest allowance. You have to have a lot of savings to breach that allowance, and even if you do you still earn interest, but pay 20% tax on the amount above £1,000.
    Originally posted by ValiantSon
    We don't know the OP's tax position. Therefore it is quite wrong to assume that the OP may not be earning enough interest to breach the 1K allowance. The children are taxpayers in their own right and have their own allowances that can be used to ensure that the parents tax liability is minimised. The OP could have earnings that puts them in the 40% bracket and therefore the tax-free savings allowance is less! So more reason why they should properly utilise any tax breaks that the children also have.
    • Mumtomany
    • By Mumtomany 7th Aug 18, 7:41 AM
    • 10 Posts
    • 8 Thanks
    Mumtomany
    Thanks. I like the idea of lumping it together and getting a better interest rate and share between the 3 of them. That could work.

    I won!!!8217;t reach the tax threshold so no problem their.

    I would prefer the accounts in their name, just because in effect it is money saved for them but I need to be able to pay the things that come up for them out of their pots iyswim.

    Thank you.
    • ValiantSon
    • By ValiantSon 7th Aug 18, 2:38 PM
    • 2,469 Posts
    • 2,380 Thanks
    ValiantSon
    We don't know the OP's tax position. Therefore it is quite wrong to assume that the OP may not be earning enough interest to breach the 1K allowance. The children are taxpayers in their own right and have their own allowances that can be used to ensure that the parents tax liability is minimised. The OP could have earnings that puts them in the 40% bracket and therefore the tax-free savings allowance is less! So more reason why they should properly utilise any tax breaks that the children also have.
    Originally posted by Steve_xx
    Whatever.

    I work on the principle that people aren't idiots. Furthermore, unlike you, I read what the OP had written and, as I pointed out, they already had savings for the children in their own name. It was not an unreasonable step, therefore, to assume that this was how they wished to continue. Not everyone is obsessed with minimising the tax they pay, by the way.

    Over 80% of tax payers only pay at the basic rate, so on the balance of probability, the OP was not likely to be a higher rate tax payer. They may have been, and if they were then they would most likely be aware of the tax implications of their savings products.

    You wanted to pick at what I had written.
    • ValiantSon
    • By ValiantSon 7th Aug 18, 2:47 PM
    • 2,469 Posts
    • 2,380 Thanks
    ValiantSon
    Thanks. I like the idea of lumping it together and getting a better interest rate and share between the 3 of them. That could work.

    I won!!!8217;t reach the tax threshold so no problem their.

    I would prefer the accounts in their name, just because in effect it is money saved for them but I need to be able to pay the things that come up for them out of their pots iyswim.

    Thank you.
    Originally posted by Mumtomany
    You can stil make withdrawals for things for them for accounts that are held in their own names. You will be the trustee of these accounts and you are entitled to make withdrawals to pay for things that are for their benefit. At the age of 18 you will no longer be able to do that, as the children will gain full control over their own finances.

    You could open children's savings accounts if you wanted (but still use the regular saver as described). However, children's savings accounts are not necessarily as good as adult ones. There are some exceptions, although the age of the children limits access:

    Santander 123 Mini pays 3% on balances between £300 and £2,000.Children have to be between 11 and 17 to hold this account. However, you can get round this barrier by opening a Santander 123 Mini In Trust if they are under 11, and then transfer to the 123 Mini when they reach 11. If you opened these accounts for them then they would have access to the 5% regular saver in their own name too.https://www.santander.co.uk/uk/current-accounts/123-mini-current-account
    • Steve_xx
    • By Steve_xx 7th Aug 18, 2:54 PM
    • 6,554 Posts
    • 2,741 Thanks
    Steve_xx
    Whatever.

    I work on the principle that people aren't idiots. Furthermore, unlike you, I read what the OP had written and, as I pointed out, they already had savings for the children in their own name. It was not an unreasonable step, therefore, to assume that this was how they wished to continue. Not everyone is obsessed with minimising the tax they pay, by the way.

    Over 80% of tax payers only pay at the basic rate, so on the balance of probability, the OP was not likely to be a higher rate tax payer. They may have been, and if they were then they would most likely be aware of the tax implications of their savings products.

    You wanted to pick at what I had written.
    Originally posted by ValiantSon
    I wanted to highlight options and potentials that I considered you had overlooked.
    • polymaff
    • By polymaff 7th Aug 18, 3:59 PM
    • 2,193 Posts
    • 950 Thanks
    polymaff
    Not sure if tho is the right area to discuss kids accounts so please forgive me if itís wrong. Basically, I have 3 savings accounts, theyíre used for my children as itís money I save for them but itís accessed by myself for items that they may need. Eg one child has a medical condition and we self fund some equipment, so we access the account when the next payment is due (every 2 to 3 months). At the moment their money is sitting in savings accounts linked to my Santander 123 account. I like the simplicity of moving money between accounts when required but Iím also mindful that theyíre not getting a great interest rate but also the accounts are in my name rather than theirs which can look as if I have more than I actually do but I also need control.

    Is this the best option? Stick with what Iím doing or is there a better way?

    Thanks
    Originally posted by Mumtomany
    You'll only get higher rates if you devolve some authority to the children. That might be just the thing to do.

    See:

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