Halifax - Kids Regular Saver - interest rate hiked to 4.5% annual
407°

Halifax - Kids Regular Saver - interest rate hiked to 4.5% annual

18
Found 5th Dec
Starved of interest on adult accounts?


Moving your hard(ly) earned money to a sun soaked tax shelter!?


Wait....the little critters are useful for better interest rates right here in Blighty!




A monthly regular saver from Halifax offering 4.5% AER, that allows deposits from £10 to £100 per month.


Interest paid on anniversary of account opening. Final Maturity Amount will be deposited into an account you designate or, if into a Young Saver (offering 2% currently) if you have no designated account.




No Withdrawals allowed (only by closure of account)


Only one account per child.


If opening for more than one child allow a gap of 3 days for 2nd/3rd child etc.


Can be opened online using birth certificate or passport photo page


Each child can earn upto £100 tax free in a year


Halifax is owned by Lloyds Banking Group so normal FSCS (£85,000) safety applies.

18 Comments

any info on tax liability on interest ?

If I could afford to 'risk' something like £5,000 as part of a child's future nest egg, I would rather put it into a couple of nice pieces of antique furniture or jewellery, or even buy a house in an eastern European village.
You will never lose all of the investment, and should easily gain more than the pathetic amounts of today's interest, especially with antiques, but only if you have some sort of feel or knowledge.
I realise my suggestions are not suited to saving a fiver a week or something, but as part of a bigger picture it has to be worth a go.

kamenitzabrit7 m ago

If I could afford to 'risk' something like £5,000 as part of a child's …If I could afford to 'risk' something like £5,000 as part of a child's future nest egg, I would rather put it into a couple of nice pieces of antique furniture or jewellery, or even buy a house in an eastern European village.You will never lose all of the investment, and should easily gain more than the pathetic amounts of today's interest, especially with antiques, but only if you have some sort of feel or knowledge.I realise my suggestions are not suited to saving a fiver a week or something, but as part of a bigger picture it has to be worth a go.



Buying 5K of bitcoin back in 2011 would've been a great investment for a child.

Upon account maturity, can this final amount be moved to a "designated" account in the adults name?

I bet everyone that is gonna put their own money in just to get more out and not actually do it for their children, would be the first to complain that companies don’t. Pay tax or very little tax. But yet hang on people will use their own kids to save on tax etc. Hypocrites!!!
Edited by: "y_am_I_buying_this" 5th Dec

Original Poster

totemPole25 m ago

any info on tax liability on interest ?

AFAIK, ​Each child can earn up to £100 tax free interest in a year
Good reminder, I've updated the to description

It’s a good way to eke extra cash out of the ex husband ... I’ve asked him to pay £50 extra per month to save towards our son’s driving lessons! (He’s 13!)

Original Poster

Sharpharp28 m ago

Upon account maturity, can this final amount be moved to a "designated" …Upon account maturity, can this final amount be moved to a "designated" account in the adults name?

Intuitively I'd say yes. It is operated by the parent in trust, so of course. but the bigger question is it treated as 'new' income if I move it back in to my account at the end of the year? I don't know!

It’s more the deliberately avoiding tax I’m on about.

£100 per month @ 4.5% give £27 gross interest per child - is it worth it?

Edit: You can though invest 50k in a nationwide child account paying 2.5% which is worth it. Halifax and Lloyds it is 20k each at 2.25% and you can do both for each child. Of course any interest over £100 pa counts as parental income if the capital came from the parents.
Edited by: "m1chaels" 5th Dec

m1chaels42 m ago

£100 per month @ 4.5% give £27 gross interest per child - is it worth it?



Yup beat me to it - especially as you can probably get about half that without using a kids account, so we are really talking about £15 tops difference, with the parents allowed up to £1000 tax free interest (£500 if you are a higher rate earner), the effort I barely worth it (and then the tax on those savings would presumably be £5.40-£10.80 if we are just talking about tax avoidance here!).

So worst case, a higher rate tax payer is taking a tenner of the governments money over the course of a year, setting up an account, a direct debit, and the moving it back 12 months later. Higher rate tax payer is on at least £45k... So lets say... AT least £25 an hour... This really isn't worth their time if that is the only goal (just like this reply probably wasn't worth my time to write... or your time to read)!

moneyadviceservice.org.uk/en/…nts

gov.uk/gov…nce

Anyway, I actually set up accounts for my kids last week - but had to pop into the actual bank with their Birth certs and then a whole load more problems meant I actually had to go to the bank 4 times. Was somewhat regretting it at that point! Ah well, sorted now! On that note, assume existing accounts will get the 4.5% too?

Original Poster

FrostbiteXIII2 h, 12 m ago

Yup beat me to it - especially as you can probably get about half that …Yup beat me to it - especially as you can probably get about half that without using a kids account, so we are really talking about £15 tops difference, with the parents allowed up to £1000 tax free interest (£500 if you are a higher rate earner), the effort I barely worth it (and then the tax on those savings would presumably be £5.40-£10.80 if we are just talking about tax avoidance here!). :)So worst case, a higher rate tax payer is taking a tenner of the governments money over the course of a year, setting up an account, a direct debit, and the moving it back 12 months later. Higher rate tax payer is on at least £45k... So lets say... AT least £25 an hour... This really isn't worth their time if that is the only goal (just like this reply probably wasn't worth my time to write... or your time to read)! https://www.moneyadviceservice.org.uk/en/articles/childrens-savings-accounts#tax-on-childrens-savingshttps://www.gov.uk/government/publications/personal-savings-allowance-factsheet/personal-savings-allowance#how-much-your-personal-savings-allowance-will-beAnyway, I actually set up accounts for my kids last week - but had to pop into the actual bank with their Birth certs and then a whole load more problems meant I actually had to go to the bank 4 times. Was somewhat regretting it at that point! Ah well, sorted now! On that note, assume existing accounts will get the 4.5% too?

Sorry, AFAIK, existing accounts don't get the higher interest. It's a fixed interest rate from the date your kids account year starts.

Our kids accounts, were due 3 weeks back which I continued/ renewed, so personally we're getting 4%. And no, we can't close it and open a new one.
Halifax are 1 step ahead of gits like me
Oh well. Win some, lose some! ​

I have just opened one for our daughter

Children's accounts will be taxed as if they're the parents. However, basic rate tax payers can earn £1000 and higher rate tax payers £500 in interest each year without needing to pay tax anyway, so unless you have huge amounts saved, it probably won't be an issue anyway.

Thanks

If you really want a no brainer, open a HTB ISA (Providing you're a first time buyer) get 2.25%with Barclays, save £200 per month with initial £1200deposit and withdraw at anytime with interest penalty free even if you decide not to buy a house. Win win and tax free too

DazLFC5th Dec

If you really want a no brainer, open a HTB ISA (Providing you're a first …If you really want a no brainer, open a HTB ISA (Providing you're a first time buyer) get 2.25%with Barclays, save £200 per month with initial £1200deposit and withdraw at anytime with interest penalty free even if you decide not to buy a house. Win win and tax free too



Always wondered if even if you weren't a FTB you could open an FTB ISA and just use it as a normal isa savings account as long as you had no intention of trying to get the govt 25% uplift....
Post a comment
Avatar
@
    Text