For people considering getting savings advice in Cheshire, attention will at some point turn to their children or grandchildren. What is the best way to safeguard their future? How can their savings be managed effectively?
When scanning the market for good deals, people will often find that children’s savings accounts offer more generous interest rates than adult accounts – but these can come with caveats attached. Eligibility may depend on the age range of the children concerned, so it is a good idea to check that the account is suitable before committing to opening it.
There are currently a number of competing deals. Revolut, for instance, have just launched their new instant savings account for children aged six to 15. Revolut claims this move will help young savers become more financially responsible, while simultaneously earning healthy returns on their savings.
Other accounts include the Virgin M Power account, HSBC’s MySavings account and Coventry Building Society’s Young Saver account.
Some people may instead prefer to opt for fixed-rate children’s savings accounts, or bonds, which tie up their money up for a defined period, usually between one and five years. Organisations such as Cambridge Building Society and Saffron Building Society, for example, offer related deals in this product.
Parents and grandparents may alternatively consider a tax-free Junior ISA (individual savings account) instead. The allowance is £9,000 a year. This is a particularly useful vehicle for preserving savings tax-free status in the long run. It remains locked until the child’s 18th birthday, whereupon it turns to an adult ISA.
