Child's bank account

[thegraylady]

Can anyone recommend a good children's bank account for my newborn ?

Something that attracts a bit of interest and is easy to manage, online would be good but not essential.

Thank you all.

can't recommend a good one but can recommend to avoid HSBC

Depends how you want to save, but how about Premium Bonds. Any prizes can be automatically used to buy more premium bonds.

Halifax do a good children's savings accounts. Sorry cjlb, but don't touch premium bonds! No interest and you are not likely to get any decent returns.

second halifax

I must also mention NS&I Children's Bonus Bonds. Good if you want to put larger lump sum in. Paying 2.50% aer and money completely safe.

I agree that Premium Bonds may not pay great returns, but then again, they just might and your money is completely safe. You are right, they don't pay interest, but they aren't set up to do so anyway and that isn't how the money 'grows'.

The Halifax account does pay good interest for the current climate, but it is very restrictive. Only runs for 12 months, must pay in between £10 and £100 (max) a month, no withdrawals allowed and on maturity, you must pay the proceeds in to another Halifax account in the child's name which needs to be opened at the same time as the savings plan. Good ploy for ensuring a new account and new account holder.

Not sure I am too keen on being told what I must do with my money (when there is some).

They must have changed the terms since my DS's account was opened

Premium Savings Bonds recently cut their prize payouts

Given his age Nationwide do some ok fixed rate bonds for fixed lengths ranging 1-5 years

NS&I Childrens Bond is good too

I wasn't telling you not to buy premium bonds cljb. My opinion was for the OP who asked for advice. The "sorry cljb" was an aplogy for having to disagree with you.

and i didn't read your previous post properly did i? sorry

jangly, no apology necessary. Wouldn't be much of a forum if we couldn't disagree with one another once in a while

nationwide have some good ones.

Thank you everyone. I will have a look into all your ideas.

Aside from straight bank accounts, if you want something slightly more risky but potentially more lucrative longer-term there are Children's Trust Funds (managed like unit trusts) avaible from friendly societies like Family Investments. You can start them off with the CTF voucher received at birth (up to Jan) or you can set one up yourself. There's an annual maximum you can invest.

BTW... make it very clear when opening the account that it is for a non-tax-paying child. Then tax will not be taken off the interest at source. (This happened to me!!!)