Children’s Ban Accounts

[Clemally]

My DC have bank accounts, crap interest rates.

Looking to set them up accounts with better rates, I don’t want them to have access as it will be to pay for cars when they’re older. Both have a few thousand in them.

Something with an easy to use app would be great!

Ban Accounts? Ffs I’ve made a click bait title 🤣

Careful, it’ll be in the DM next !

Have you considered a Junior Stocks and Shares ISA? Can't withdraw money until they are 18 and should give a better rate of return than cash savings.

Are advise on companies to look at?

I've got an NS&I Junior ISA for my son - like @Lucanus says, can't touch until he's 18. Currently the interest rate is 4% so building up nicely. He's only 3, by the time he gets to use it there should be enough in there to look after his parents in their old age (!)

No app, but they've overhauled the website recently so much easier to use.

it is very difficult to find any account that will not give them complete access once 18, if you are really worried about how theywill use money it is better to keep money in your own name

Nationwide set us up with one 4% interest, and held in trust to be released when parents decide. The interest doesn't stay that rate once 18 but it doesn't just get sent to the child to access it until parent decides

@Clemally I'd have a look at Hargreaves Lansdown. Their Junior ISA seems to be completely free of charges with a wide choice of investments.

At the moment adult fixed term accounts pay higher than junior ISAs so unless you have a large amount of savings (earning over £1000 in interest per year, therefore paying tax on your interest) I would put the savings in your name in a 1 or 2 year fix, then reassess when the account matures.

NS&I currently offer a 1 year fixed rate at 6.2% (can't access the money until the year is up) and I wish my daughter's money was in there instead of her junior ISA at 4%! Any new money that we save for her are going in my name until junior ISAs start paying more than adult savings accounts.

Hope this helps!

Oh and I've just seen that even adult ISAs pay higher than the NS&I junior ISA, in case you do pay tax on your interest already. Money box have a 5% rate (part of that is a 12 month bonus rate) or Virgin Money 4.91%.

This sounds like what I'm looking for. Do you have the name of the account please?