I can't fathom and I'm sure it's me, why anyone would save into this? Dc account 4.5%

[Fragalino]

So Halifax dc saver account pay in between 10 and 100pcm and get 4.5 interest at end?

Which is 5.40?

I have a couple hundred in saving account for dc with rubbish interest. What can I do with it?

I add about 30 to each each month.

Kit30 they have cash isa, this is small savings to give them a base for when they want to start spending as teens really and to help them learn to manage money before they get their cash isa.

I'm just thinking though is my inertia missing a trick. Do people generally keep moving money around even for a year to get that extra 10 or 30 pounds interest.

I think the interest is paid annually so you would need to keep it in. If you have 300 to invest why not pay that in during the first three months and then pay the amount you can afford after that? At the end of the year it moves to a kids saver which is currently 1.98% I think so still not terrible by today’s standards but you could move it somewhere else then - I have halifax accounts anyway so I find it really convenient as I can see dd’s accounts on my online banking so v easy for me to move money around

“After the the year and banked interest you then draw it out and move it elsewhere?”

You don’t have to move it around. At the end of the year the account ‘matures’ and they move it into a regular saving account, and automatically open a new high interest regular saver, if you keep the payments going. But check with the branch that that is what is happening.

We have a Barclays children's account for our son which pays a decent amount of interest.

Have you considered buying premium bonds?

Do people generally keep moving money around even for a year to get that extra 10 or 30 pounds interest. Some people do, yes. You have to weight up the amount of interest against the value of your time. Some people will move a lot more frequently, but they tend to be people who find this sort of thing interesting.

We are saving in to regular savers with an interest rate of 5% for a year. So £300 a month for 12 months and 5% interest. Of course at the end of the year we have to move it or lose our rate but we get a much better savings rate than we would otherwise and we can add it to our other savings at the end.

If you are only saving a small amount it's going to be pennies in interest really wherever you put it at the current rates.

It's risk free and just about the best you can get at the moment. It's not just the interest, it's the amount of money it adds up to over time.

Also the interest compounds, so as time goes on, you're earning interest on interest and it does grow a little faster and if you can put something away every month from birth to 18 it can add up to a useful sum.

You can also try premium bonds and investment products, but they attract a risk. With investment products you could end up with less over time, that's unlikely over 18 years but it could happen. With premium bonds you could win a decent prize or you could win very little and end up with less than you'd have by putting the money in a savings Account.

Also good to get into the habit of saving for the future instead of spending all your money straight away.

Martin lewis' site has really good info on kids savings.

You can feed money from an account into a regular saver to max the interest and then review at the end of the 12 months what the best rate is. If it's for when they're older look at current accounts with linked savers in your own name - as someone mentioned first direct offer a 5% linked account.

Savings rates aren't great at the moment, so if you want to squeeze every penny out of your savings it's worth regularly reviewing your options.

If its easy to do I'm happy to do it.

We do have first direct current accounts.

So we move money from there into a saver and get 5%.

It's all the conditions that confuse me!

Only x amount, min but max is blah and only a year etc etc

My meagre idea is just to get a few hundred going for when they are teens and want to buy their own stuff at moment neither seem motivated to buy or want anything, never ask.

So when they do, they can see they have nice amount, plenty for cinema or whatever but I want them to learn to manage it. So when they hit 18 and they get a few thousand.... They will be well used to managing money and won't see it as loads to blow.

I have couple grand in pb, only been a few months but 0 wins at present.

I'm also considering moving their cash isa to stocks and shares isa.

Open the First Direct regular saver account (you can do it instantly through the app), because it is just about the best return you can get without taking risk.

It's actually only £24 per year for the full £100 per month. At least it has been the last two years.

Think HSBC has the best interest rate for non-regular savings 3%.

Lloyds used to have a 3% online saver account. Which you could pay max £400 into each month. So I would open it up, save the maximum (it was a good incentive to make sure I saved at least that much into at least that account) and at the end of the year I got £76 interest. Upon which the account would mature and drop down to something poor like 0.6%.

So I'd do the same again the next year. Keep the 0.6% account going, but start a new 3% account.
This year I've added the 3% account's money into the original 0.6% account with last year's money in and then closed the one I don't need.

And started again. Except they've dropped their interest to 2.5% so I won't get as much this time next year.

Thanks for the responses.