putting school fees money into a child's saving account

[savingforschoolfees]

I'm anticipating making about £80 K profit in a house sale/move and would like to put these funds into my daughter's name and take them out over the years to pay her school fees (she has SEN and will be starting at an independent school into year 3), can anyone recommend a child savings account to do this with? It appears to earn any interest it will need to be done over several different accounts?

You would need to declare the interest gained on the money in your daughters name on your tax return if it exceeds £100 per year. (This is due to the fact that the source of the money is from you as her parent)
What are you trying to achieve my putting it in her name?

If the account is in your child's name then the money belongs to her and at age 18 should be passed to her. In reality this is your money as you've chosen how it will be spent so it should go into an account in your name.

It would be spent long before she is 18 - it will cover the next few years of fees until she is in early secondary school.

I wanted it in her name as it's earmarked for her education

Just whack it in premium bonds and draw down as needed. Putting it in her name makes zero sense.

You can’t withdraw if it is in her name.
put it in your name and then use it for whatever

I have heard of people using cash to buy rental property and using the income from that to pay fees - but 80k is likely not enough for that kind of scheme.

I have money that I'm ear-marking for my kids education in Credit Union accounts and premium bonds in their name. As their parent, I have control of their finances, and I absolutely can withdraw and use the money for whatever purpose I deem fit.

The Credit Union, that's only until they're 16, so watch out for whatever age they become solely responsible for it is my only advice.

I would probably put it into premium bonds. Max amount in her name and you can withdraw as needed, and any remaining in your own name

If you put money in their names they will have control over it. Watch out for accounts that will lock all money away until the child is 18! If you have the choice of how to spend it then it is your money.

Schools will often let you pay in fees all upfront and will give you a good discount equivalent to a decent savings rate for doing so.

We’ve done this but put them premium bonds. I hadn’t realised that at 16 dc1 would get control of the premium bonds though, which has been a huge headache to sort out.

Don't put all of the money into premium bonds, you are wasting an opportunity to grow that money over time. Watch this video for more information

You don't say how much you will need access to annually or from what date and if you are a low or high rate tax payer?

You want to explore fixed term ISAs, stocks and shares ISAs, high interest savings accounts and premium bonds. That will spread your risk and also allow for some good returns on the fees that won't be due for several years.

I don't see the benefit of putting it in her name as you'd still pay tax on interest.

If it's a case of keeping it separate just open an account at a bank you don't bank with to benefit from the government protection cap should the bank go bust. You'll still pay tax though.

This link is helpful in respect of tax. My DCs money is in ISAs to avoid me paying tax at the higher rate. This can't be accessed until they are 18 though.

www.gov.uk/savings-for-children