What bank account shall we open for DDs (4 and 6)?

[plipplops]

DHs uncle has given DDs a cheque for £500 each. We want to open a bank account for each of them as the cheques are in their name. Ideally some kind of instant access thing where they can go to the bank/post office to pay in and take out money and see their balance etc. We don't want a regular saver thing (I don't intend to give them any further cash this is plenty!)

Any thoughts would be very much appreciated :o)

You need to get advice from your local bank or building society on the best interest rates (make sure that no tax is deducted).

Personally I would not allow 4 & 6 year olds access to that sort of money - can you set up an account with the bulk of the money and then a separate account for say, £50 which they can use to add to if they get birthday or christmas presents for example. My DS inherited a similar amount when he was 2 and although we have shown him the balance (he is now 12) he understands that it is a significant amount of money and to be saved for buying a car/university or something similar in the future.

Unless you are happy for your 4 year old to be taking out large sums of money .

Have a look at the thread about the 19 year old at university with no idea how to budget properly .

If I had my way they wouldn't have access to it until they're well into their 20s but the cheques are already in their names! And they wouldn't be able to get to the bank to get any cash without my help, so they can't just get hold of it and spend it. DD1 especially is v sensible and we think if we could open an account where she can add to it and see it increasing it might help her.

You're right though a separate savings vehicle of some kind and putting less in an instant access type thing is a good idea. It's so depressing how crappy interest rates are though...

Nationwide do a kids account that I opened when I was 5 and the interest is amazing! I still have money in it I'm sure from the first cheque I ever got. It used to come with a bank book and when you're under 16 you have to have your adult with you to withdraw or pay in. If they still do the books you can keep them safe?

Even though the cheques are in the childrens' names it doesn't mean you have to allow them access, just hide the books .

Totally agree with you about interest rates though.

Good point re: Nationwide, my 12 year old DS has his account (s) with them !

I suppose we could just put it into their child trust funds? I'm annoyed that they get control over it when they're 18 and are probably still totally irresponsible, but we've not put any of our own money into it so I'll have to detach myself if they've turned horrible by then The uncle knows them and has decided to give them the money directly instead of to us to do something sensible with until we think they're ready, so I guess we've got until they turn 18 to convince them not to waste it!

I would still like them to have a bank account though, something like the old post office ones but they don't seem to exist any more?

My DS 13yo has a savings account with the Halifax and another with Nationwide (long story) and, although they're notionally in his name, the account holder is actually me. I can pay in cheques made out to him but he can't take money out without my say so. The account he does control is a simple one for 11+yos at Barclays - has a debit/cash card but no overdraft facility. He uses that for his allowance, cash gifts, any wages from odd jobs etc.

I really would suggest a Halifax ISA for kids - you do need to have one yourself but you could just stick £50 in one. The advantage is that the kids isa has amazing interest rates - I think 6% which is just incredible in this market

Agree with wudruc- Halifax is excellent

agree Halifax. my DC don't have actual access to it.