- Children, like adults, have a personal allowance of £9,440 for the 2013-2014 tax year. They can earn up to this amount in interest before paying tax.
- Parents need to fill out an R85 form - available at every bank - for each children's account opened so that tax isn't paid on savings. If tax is mistakenly paid, use an R40 form to claim back.
- Parents (and step-parents) can gift their children as much money as they like, but there is a rule that the money can only earn up to £100 in interest a year tax-free. Money given by grandparents and other adults is not subject to this cap.
CHILDREN'S SAVINGS RATES Type of account (min investment) 0% 20% 40% (1) Only available to those living within the society's branch network area (2) Plus 0.25 per cent of the average monthly balance to Great Ormond Street Children's Charity (3) For those aged 11 to 17 only. (4) Includes a bonus of 0.5 percentage points for the first year. (5) You need to have a Lloyds Bank current account to open this account. Lloyds TBS Young Saver (5) 3.00 2.40 1.80 Halifax Young Saver(£1+) 3.00 2.40 1.80 Bank of Scotland Young Saver(£1+) 3.00 2.40 1.80 Swansea Cygnet (£1+) (1) 2.75 2.20 1.65 Skipton Leap Issue 2(£25+)(4) 2.75 2.20 1.65 Stafford Railway BS First Track(£1+) 2.25 1.80 1.35 Chorley BS Young Chorlean(£5+)(1) 2.00 1.60 1.20 Chelsea Ready Steady Save(£1+) 2.00 1.60 1.20 C&G Young Investor(£1+) 2.00 1.60 1.20 Virgin Young Saver Issue 2 (£1) 2.00 1.60 1.20 Norwich & Peterborough Young Saver(£1+) 1.75 1.40 1.05 Yorkshire BS Freedom/One Day(£1+) 1.75 1.40 1.05 Cambridge First Account(£1+) 1.70 1.36 1.02 Furness BS Young Saver 1.75 1.40 1.05 Newbury Young Saver(£1+) 1.65 1.32 0.99 Saffron BS Ladybird(£1+) 1.50 1.20 0.90 Kent Reliance Peter Pan(£10+)(2) 1.25 1.00 0.75 Principality BS Young Saver(£1+) 0.90 0.72 0.54 Coventry BS intro(£20+) (3) 0.85 0.68 0.51 Nationwide BS Smart(£1+) 0.75 0.60 0.45 CHILDREN'S SAVINGS RATES - Fixed rates Type of account (min investment) 0% 20% 40% (1) Regular savings of £10-£100 per month aimed at parents saving for children (up to the age 16). After 12 months the money is moved into another account. (3) Fixed for five years. (4) Fixed for 14 months (5) Fixed for two years (6) Fixed for three years (7) Fixed for four years - Open an account Halifax(£10+) (1) 6.00 4.80 3.60 Halifax(7) 2.45 1.96 1.47 Halifax(6) 2.40 1.92 1.44 Halifax(5) 2.30 1.84 1.38 Nationwide BS Smart Bond(£1+) (4) 2.00 1.60 1.20 All our best savings rates tables...General savings (internet, branch-based) Fixed-rate accounts Phone/postal accounts Best cash Isas Junior Isas and children's savings accounts Child Trust Funds (CTFs) National Savings Monthly income savings accounts Offshore accounts Accounts for older savers (50+)
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Dear Reader,These tables are unique on the web. They are independent and providers are not forced to pay to appear, which is typically the case at big comparison sites.
Sylvia MorrisThey are completely unbiased - we simply show the best rates around and don't do 'featured deals'.
We've gone a step further, too. To feature in the best buys on variable rate accounts in our savings tables, an account must give you easy access to your money and come with no hidden catches.
In the past we have refused to include accounts where the rate is boosted by a short-term bonus or those with over-restrictive conditions so you only earn the advertised rate if you make three or less withdrawals a year.
But with interest rates so low, most of today's best deals have some sort of clause built in, whether that's a bonus or a restriction on withdrawals.
For that reason, we've included decent bonuses as long as they last for at least 12 months. This is to avoid your having to switch your account too often when short-term bonuses run out.
If there is a restriction on withdrawals we have made this clear in the notes on each account.
We also ignore old-style 'notice' accounts where the bank or building society can demand you give up to six months' notice that you want to take our money out while it can change the rate at any time without warning.
All banks and building societies are registered with the Financial Services Authority and signed up to the Financial Services Compensation Scheme, either directly (protecting up to £85,000) or via its passport scheme (where the compensation limit depends on the bank's home country. In Europe it is €100,000).
Sylvia Morris, This is Money savings tables expert
If you have a question about the tables email sy.morris@dailymail.co.uk and editor@thisismoney.co.uk
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