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Best Savings Account for TEENAGER?

2 replies

SouthDevonDelight · 09/04/2010 12:35

17 year old DD has part-time waitressing and florist shop jobs, earning approx £50+ per week. Currently spends it all VERY QUICKLY so I need to encourage saving a little! Yesterday she said to me:

"I've been hearing/reading stuff about April being end of financial year for lots of businesses and about ISA's and I want one, but what's the point of my savings being tax free if I don't get taxed on my wages anyway because I don't earn enough" ???

If she is starting to think about saving a little something, any advice on what might be the best option - she has an ordinary NatWest young person's current account and £250 in a building society accumulated from birthday/christmas cheques sent by never met distant relatives up to age of about 10 (which she has forgotten about, and I'm loathe to divulge as it will only be withdrawn and spent immediately!).

No seriously, do any financially astute MN's have recommendations for daughter - I need to strike while the iron is hot!

OP posts:
NadiaWadia · 11/04/2010 15:15

Yes she doesn't have to pay tax on the interest now, but if she's earning over the threshold sometime in the future then she will start to pay tax. So if she puts it in an ISA now she will never pay interest on those savings, even if she becomes a millionnaire!

Of course she might need to spend the money when she goes to uni, but still she might as well use an ISA.

ChasingSquirrels · 11/04/2010 15:19

or a regular saver - someone is doing one that pays 5% as long as you deposit £10-£100 pm, but no withdrawals.
Maybe Halifax.
Look at moneysupermarket.com

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