A reader from Northumberland wants to open a savings account for her nephew.
Andy McKechnie, head of sales and marketing for savings at Halifax, tackles the problem.
Helen from Northumberland asks:
Which is the best account to open to save for my nephew whom i don’t see, except got Christmas, birthdays, etc?
A lot of savings providers offer accounts that make saving for children easy.
Some accounts allow you to save regularly each month, on behalf of a child, and often offer fixed, high interest rates, such as the Halifax Children’s Regular Saver, which offers a high interest rate.
This type of account allows you to save an amount every month and after 12 months transfer all the money you have saved and your interest into another savings account – usually with instant/easy access. These types of account are a great way of building up savings for the child over a period of time.
If regular access is needed many providers offer ‘pocket money’ accounts, which can often be opened either on behalf of a child or in their own name – age restrictions can apply. These accounts usually offer variable rates of interest so interest rates can change.
Remember – children under the age of 16 do not have to pay tax on their savings – this applies also to accounts held by an adult in trust for a child. More information on this can be found on the HMRC website at www.hmrc.gov.uk.
If you have a question for Andy, go to the myfinances.co.uk Ask the Savings Expert section.
Or for more information on your savings options go to savings at Halifax
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