Martin Lewis shares how Britons can find top interest rates for grandchildren at Christmas
Martin Lewis provides advice on children's savings accounts
Martin Lewis, Money Saving Expert, makes frequent appearances, using his platforms to assist Britons. Appearing on his self-titled Money Show on ITV this evening, Martin explained that many people will be wishing to put away money for their grandchildren this festive season. But instead of handing over the cash to children, a savings account or Junior ISA could present the perfect chance to keep money secure, and potentially even help it to grow.
And there are healthy interest rates currently available to help with this process.
Martin stressed above all else that grandparents and parents take the time to save “with” their children rather than saving “for” them, as it can offer an important lesson in financial literacy.
However, the best savings accounts which are currently available are offered by Halifax and Barclays, both at 3.5 percent.
These are regular savers, fixed for one year, with a maximum age limit of 15.
We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.
The Halifax Kids Monthly Saver allows a maximum of £100 a month deposit, and can be opened online or in branch.
Whereas the Barclays Children’s Regular Saver offers the same, but can only be opened in person.
Martin did stress, however, that people are not supposed to withdraw from these accounts before the one year period finishes, but they can if needed.
These accounts, the Money Saving Expert, said, are particularly beneficial for those hoping to save in small lump sums, as people need not pay in monthly.
When it comes to easy access accounts for larger lump sums, however, there are a number of options worth considering, and Martin unpacked the details.
Carer’s Allowance: State Pension & Pension Credit may be affected [EXPLAINED]
State Pension age could be means tested – proposals detailed [ANALYSIS]
Self Assessment: Rishi Sunak urged to extend January 31 deadline [INSIGHT]
The Santander 123 mini account is for children aged 13-18, or of any age if parents are customers, and offers three percent interest on amounts between £1,500 and £2,000.
This is followed closely behind by the HSBC MySavings account and the TSB Under-19s, which both offer 2.5 percent interest for sums up to £3,000 and £2,500 respectively.
Finally, the Virgin Money Young Saver has a 1.75 percent interest rate for children between 0 and 15, and amounts up to a substantial £25,000.
Some of these accounts can give children debit cards from age 11 or 13, but, as Martin stated, this is a matter of preference.
Certain grandparents or parents may even wish to establish a pre-paid card, but these usually come with a £24 per year fee that it is worth being aware of.
However, Martin continued, what remains a popular option for people wanting to put money away for younger ones is a Junior ISA.
Junior ISAs, otherwise known as JISAs are tax-free, and allow savings of up to £9,000 this tax year, with money locked away until a child turns 18.
While this, Martin acknowledged, can be a pro and a con, it will be suitable for those looking to secure money for a child’s future in the long term.
Martin explained the top cash JISA currently available is from Coventry Building Society which is offering a 2.95 percent variable rate.
It also allows Child Trust Fund transfers, another topic Martin touched upon in tonight’s show.
Alternatively, for the chance of a higher return, some may choose an Investment JISA.
But Martin warned returns are always dependent on stock market performance, and so people may get less than they expect.
With interest rates dire recently, savings accounts for children appear to be holding up, and they could be a suitable solution for those hoping to make cash grow for their children or grandchildren this Christmas.
Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip
Source: Read Full Article