Kids bank account

[vch]

Hello wise forum members,

Our son is about to be paid for his modelling job and I should probably go open a bank account for him. So are there any recommended local banks that cater to kids? Also, what kind of account should I open? A regular savings account? A junior ISA? A stock market index fund?

Thanks in advance!

[Mrs TP]

All the banks do kids savings accounts. I'm not up to speed on the best deals but what you should do is make sure that when opening the application is processed correctly so your son does not pay tax on his savings / interest.

[Sonners]

When I opened my dayghter's account the young saver account rate was better than the JISA so there was no point tying the money up until 16 like a JISA does.

You don't say how much he is likely to earn but in my opinion a JISA is only worth doing if he will utilise all of his personal income tax allowance.

A FTSE linked fund could be a good investment if the money is not needed over the medium to long term as it should outperform cash on deposit on that timeframe but there is an element if risk.

[SLad]

Halifax have a good ongoing deal where if you open an isa with them (minimal investment required) they will give your child a high interest rate on their child ISA. It was 6% when we opened her account though I think it recently dropped to 5 something.

[vch]

Thank you for the replies! They're just what I was looking for.

[eva_ben]

The Halifax is sadly dropping to 4% from January :-(

https://www.lovemoney.com/news/30777/halifax-slashes-top-junior-isa-rate-to-4

Used to be the best about at 8%.