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    • TopCat1963
    • By TopCat1963 14th May 18, 4:39 PM
    • 2Posts
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    TopCat1963
    Young Savers Interest Rate Reduction
    • #1
    • 14th May 18, 4:39 PM
    Young Savers Interest Rate Reduction 14th May 18 at 4:39 PM
    New to this, so bear with me. My son has had a young saver account with Lloyds Bank since he was born 5 years ago and it paid 2% upto 20K and 0.2% after that. Fair enough, that's what was advertised. Now they are changing the rules in July, so 2% is only payable upto 5K and 0.2% after that. Now that he has 20K in his account, interest was good but won't be after July. Does anyone have any recommendations on where to deposit 15K for a good interest rate for a young saver
Page 1
    • Westie983
    • By Westie983 14th May 18, 5:33 PM
    • 4,440 Posts
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    Westie983
    • #2
    • 14th May 18, 5:33 PM
    • #2
    • 14th May 18, 5:33 PM
    Have a look here, https://www.moneysavingexpert.com/savings/child-savings-tax-free childrens savings options.

    Westie983
    Save 12k in 2018 #10 Total (25,000)+11,000/12,000 = 91.66%
    Sealed Pot Challenge ~ 11 #97 Total (410) + 40/500 = 8.00% ( x 11)
    Xmas 2018 1 a Day #2 Total 62.59/365 = 17.14%
    Virtual Sealed Pot #1 Total 1000/1000 = 100.00%
    2 Savers Club 2018 #16 Total (1500)+-480/2000 = 51.00%

    Total 13,122.59/15,865 = 82.71%

    I'm a Board Guide on Budgeting & Bank Accounts, Debt-Free Wannabe, Disability Money Matters, and Savings & Investments. I'm a volunteer helping the boards run smoothly, but I'm not a moderator, and do not read all posts. If you see an inappropriate/illegal post then email forumteam@moneysavingexpert.com
    • xylophone
    • By xylophone 14th May 18, 5:44 PM
    • 25,790 Posts
    • 15,246 Thanks
    xylophone
    • #3
    • 14th May 18, 5:44 PM
    • #3
    • 14th May 18, 5:44 PM
    You are aware of the "100 (per parent) rule" if the money has been given by parents?

    https://www.gov.uk/savings-for-children
    • TopCat1963
    • By TopCat1963 14th May 18, 7:52 PM
    • 2 Posts
    • 0 Thanks
    TopCat1963
    • #4
    • 14th May 18, 7:52 PM
    • #4
    • 14th May 18, 7:52 PM
    Thanks for the replies. The post on new accounts that are available are just to tie you in for a year, paying in a max monthly amount for the year, then back to hardly anything after that. But my question was where best to move the amount of money, i.e. 15K that the young saver account will now only get 0.2% interest and still be for a young saver.
    • Flobberchops
    • By Flobberchops 14th May 18, 8:18 PM
    • 773 Posts
    • 552 Thanks
    Flobberchops
    • #5
    • 14th May 18, 8:18 PM
    • #5
    • 14th May 18, 8:18 PM
    I received a letter in the post today from Halifax advising of a very similar change (same banking group so no real surprise). Their instant access children's saver is also having its interest tier changed from 20k to 5k.


    That does suggest a solution for you though maybe - open the equivalent product with Halifax. Also I spot in the account information that you can open two accounts per child. So that's 10k earning 2% with Halifax, 5k with Lloyd's... you sure they don't offer the same two per child rule? Also is it important to you for all of it to be instantly accessible, what about Junior ISAs?


    What about cycling some money too, you know you could be getting 4.5% on 100 a month using a Halifax Kid's regular saver?
    I work for a UK bank, but any comments made on this forum are solely my personal opinion. Caveat Emptor!
    • xylophone
    • By xylophone 14th May 18, 8:19 PM
    • 25,790 Posts
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    xylophone
    • #6
    • 14th May 18, 8:19 PM
    • #6
    • 14th May 18, 8:19 PM
    http://www.thisismoney.co.uk/money/saving/article-1583863/Best-savings-rates-Junior-Isas-children-s-accounts.html
    • AirlieBird
    • By AirlieBird 14th May 18, 8:25 PM
    • 1,039 Posts
    • 849 Thanks
    AirlieBird
    • #7
    • 14th May 18, 8:25 PM
    • #7
    • 14th May 18, 8:25 PM
    Thanks for the replies. The post on new accounts that are available are just to tie you in for a year, paying in a max monthly amount for the year, then back to hardly anything after that. But my question was where best to move the amount of money, i.e. 15K that the young saver account will now only get 0.2% interest and still be for a young saver.
    Originally posted by TopCat1963
    If you keep scrolling down, you get to the easy access and fixed rate accounts.
    https://www.moneysavingexpert.com/savings/child-savings-tax-free#normal1
    Did you really mean to put loose?
    Lose: no longer possess, not to retain, unable to find
    Loose: not firmly or tightly fixed in place
    • TheShape
    • By TheShape 14th May 18, 8:35 PM
    • 1,302 Posts
    • 1,128 Thanks
    TheShape
    • #8
    • 14th May 18, 8:35 PM
    • #8
    • 14th May 18, 8:35 PM
    Thanks for the replies. The post on new accounts that are available are just to tie you in for a year, paying in a max monthly amount for the year, then back to hardly anything after that. But my question was where best to move the amount of money, i.e. 15K that the young saver account will now only get 0.2% interest and still be for a young saver.
    Originally posted by TopCat1963
    How far down the list did you look?

    As far as the Nationwide Smart Limited Access Account?
    • davetrousers
    • By davetrousers 14th May 18, 8:40 PM
    • 5,629 Posts
    • 4,877 Thanks
    davetrousers
    • #9
    • 14th May 18, 8:40 PM
    • #9
    • 14th May 18, 8:40 PM
    I also got a letter from Halifax today about interest rates, so I'll be keeping an eye on this thread.
    .....

    • Zorillo
    • By Zorillo 14th May 18, 9:02 PM
    • 236 Posts
    • 122 Thanks
    Zorillo
    Also had the letter from Lloyd's. I don't particularly want to let the balance in ours get to 5k anyway, the money is better off invested in my opinion.
    • CavendishWobble
    • By CavendishWobble 15th May 18, 8:08 AM
    • 45 Posts
    • 81 Thanks
    CavendishWobble
    The market does appear to have reduced its top rates of interest to between 2k - 5k so finding a kids account which pays a decent rate on a higher amount will be tougher to find. Saying that Nationwide are offering 2.75% up to 50k but you can only take out of it once, so if you are saving and not touching the money this is a good option.

    If you want full access to the funds, if your child uses it for their spending for example then Lloyds / Halifax / Bank of Scotland may still be the best options.
    However like Flopperchops said, you can open up two accounts per child so if you do this you are starting to get back to the original rate on your money, albeit with additional accounts.
    Last edited by CavendishWobble; 15-05-2018 at 8:09 AM. Reason: grammar
    Save 12k in 2018 = 10,106/15,000 (67.37%) #36
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    • chelseablue
    • By chelseablue 15th May 18, 9:55 AM
    • 2,452 Posts
    • 2,929 Thanks
    chelseablue
    Also got the letter from Halifax yesterday. My son only has about 600 in his so don't really need to move yet.

    I use his for paying in his birthday and Christmas money, he has a S&S ISA that's got almost 6,000 in.

    3 years old and he's got more money than me
    Mortgage starting balance 231,000
    Mortgage after Year 1 225,000
    Mortgage after Year 2 218,000
    • mrssjs
    • By mrssjs 17th May 18, 8:07 AM
    • 601 Posts
    • 6,261 Thanks
    mrssjs
    Also received my Halifax letters. Cashcard at 7 is being scrapped, but finally you can control both the young saver & regular saver online.

    Young saver is dropping to 0.2% over 5k
    But regular saver is rising to 4.5% from 4% AER
    • Zorillo
    • By Zorillo 17th May 18, 8:29 AM
    • 236 Posts
    • 122 Thanks
    Zorillo
    One of our Young Saver accounts has appeared on my Lloyd's app. There is currently no sign of the other, identical, account!

    Edit: it's appeared!
    Last edited by Zorillo; 22-05-2018 at 10:43 PM.
    • jimjames
    • By jimjames 17th May 18, 12:31 PM
    • 12,661 Posts
    • 11,337 Thanks
    jimjames
    Thanks for the replies. The post on new accounts that are available are just to tie you in for a year, paying in a max monthly amount for the year, then back to hardly anything after that. But my question was where best to move the amount of money, i.e. 15K that the young saver account will now only get 0.2% interest and still be for a young saver.
    Originally posted by TopCat1963
    If it's a more general where is the place to get the best return then using investments not bank accounts is likely to do that over the sort of timescales involved and if he would only have access after 18
    Remember the saying: if it looks too good to be true it almost certainly is.
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