Childcare Account

[ekumi00]

Hi all, just wondering if anyone knows the easiest i can open the government childcare account? My DS is due to start nursery in May but we have a lump sum we'll like to put in so we don't have to think about it or be tempted to spend it.

Thanks

I do mine online really easily

Do you mean Tax-Free Childcare?
I would not put in a lump sum as there is a limit to the Government top-up, max £500 top-up every three months. If you put in say £3000, you would not get £750 topup. You would only get £500 as it would reach the max topup for that 3 month period. So with one child, if you opened an account in April, you would not want to pay in more than 75% of your childcare cost during April, May and June and not pay in more than £2000 during those months. If you do pay in more than the additional amount you pay in does not get the topup added. I hope that makes sense.

If you do not need childcare until May, are you currently working? You can apply for a Tax-Free Childcare account if you are starting or restarting work within 31 days. If you are currently on maternity leave and the care would be provided for the child for whom you are currently on maternity leave, then the 31 day period also applies I believe. So I would look at opening the account in April, dependent on when you will be working in May.

You could hide your money away from yourself by putting it in an instant access savings account.