LAWTON, Okla. – For people with bigger lump sums to put away, the top accounts change.<\/p>\n
The top accounts are then the Santander 123 Mini that pays 3% AER variable but only on \u00a31,500 – \u00a32,000. Age 13-18; the HSBC MySavings that pays 2.5% AER variable on up to \u00a33,000 and TSB’s Under-19s’ Account that pays 2.5% AER variable, but on up to \u00a32,500.<\/p>\n
If your child has more than that in savings, Virgin Money pays pays 1.75% AER variable on up to \u00a325,000.<\/p>\n
With the top three mentioned, you can get a debit card if you want your children to spend on it.<\/p>\n
“Now I know many parents actually like the pre-pay cards that have parental controls so you can manage and watch what your child’s spending money on,” Martin said.<\/p>\n
“But they all have a fee – a minimum \u00a324 a year.<\/p>\n
“So it’s really a choice – the\u00a0debit cards\u00a0are free, the prepay cards have more functionality, but you pay for it.”<\/p>\n
When it comes to junior ISAs, Martin had more tips.<\/p>\n
“Here’s the big thing with junior ISAs, with cash junior ISAs the tax free incentive is almost irrelevant,” Martin said.<\/p>\n
“Firstly, most children don’t earn enough money to pay tax [\u00a312,500 a year],” Martin said.<\/p>\n
The only other times it attracts tax is if money given by parents that earns more than \u00a3100 interest a year – then it’s taxed at the parent’s rate.<\/p>\n
But parents now get the first \u00a31,000 they earn in interest tax free anyway (\u00a3500 for higher rate taxpayers).<\/p>\n
“Only the top 1% or 2% with the most savings for the kids and the most savings for the adult actually get a cash benefit from a junior ISA,” Martin said.<\/p>\n
But that doesn’t mean there’s no reason to take out a junior ISA.<\/p>\n
“The big pro is that the money’s locked away until your child turns 18,” Martin said.<\/p>\n
“Some parents love that… Some people want their child to have access to the cash sooner, in which case don’t touch a junior ISA unless you’ve got so much savings it’s a tax issue.”<\/p>\n","protected":false},"excerpt":{"rendered":"
LAWTON, Okla. – For people with bigger lump sums to put away, the top accounts change. The top accounts are then the Santander 123 Mini that pays 3% AER variable but only on \u00a31,500 – \u00a32,000. Age 13-18; the HSBC MySavings that pays 2.5% AER variable on up to \u00a33,000 and TSB’s Under-19s’ Account that […]<\/p>\n","protected":false},"author":1,"featured_media":3033,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-3072","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uncategorized"},"yoast_head":"\n