Children’s savings accounts paying the highest rate of interest
Where can you get the best return on your children’s savings if you don't want to save in a junior ISA or child trust fund?
If your child has some money from relatives or friends, where’s the best place to put the cash? They can save tax free in a junior ISA (or a child trust fund, if they were born between September 2002 and January 2011). But you don’t have to put your child’s money into a tax-free account to get the interest paid tax free (it sounds like a contradiction, but I’ll explain it in the article). Which savings accounts pay the highest interest?
F&C, will start imposing a £30 charge from April on its share-based child trust fund
Should you move your child trust fund if it’s with F&C’s share-based fund to avoid the charges?
Around six million children have child trust funds (CTFs), the tax-free account introduced by the previous government. They were abolished in 2011 by the coalition but parents (as well as friends and other relatives) can still top up existing child trust funds to a limit of £3,600 a year. The money is locked away until the child is 18, and payouts are tax free. Now one of the biggest providers of share-based child trust funds, F&C, has said it will start charging some customers £30 a year from April.
Which junior cash ISAs pay the highest rate of interest?
If you want the best junior cash ISA for your child, which accounts are worth looking at?
Junior ISAs were launched in November 2011 - the government's replacement for the child trust fund, which was abolished in January the same year. They work in a similar way to 'adult' cash ISAs. But - as I write this - interest rates among the best buys are higher.