Hi,
Apologies in advance as I don’t know much about savings accounts/tax rules etc.
I Want to start saving for my daughter (she’s 2 months old). We don’t mind not having access/being able to withdraw the money. And have accepted that she will be able to access and have control of the money once she turns 16 or 18, this isn’t a huge issue.
We have a lump sum of about £800 to open the account with. And will be saving anything from £50-200 a month, ideally until she’s 18.
Halifax are offering 3.50% gross/AER fixed for 12 months on up to £100 a month. (I would transfer £100 a month for the first year so that I don’t go over this limit).
After the year it gets transferred to an account which then offers 1.45% AER / 1.44% gross variable on balances from £1 - £5,000. And 0.01% AER / 0.01% gross variable on any excess above £5,000.
Coventry BS (junior isa) have 2.95% AER variable.
So I’m asking:
Would it be best to open a regular savings account and pay in £100 a month for the first year to benefit from a higher interest rate and then transfer to a junior ISA after the year / after we have more than £5000 savings to benefit from a higher interest rate?
Or just open a junior ISA in the first place?
Would I be allowed to open the Halifax savings account and pay in £100 pm (and benefit from the high interest rate) whilst also paying into a junior ISA at the same time? If so will there be any tax implications/fees/rules/limits that apply?
Thanks