Children’s Accounts: HSBC Have An Account For Kids

17/12/11/Rajan Chagger

Posted on 17/12/11

When the Child Trust Fund was removed as an option for parents and guardians many new parents were looking for an alternative plan to help their children with their future opportunities. The Junior ISA came along and filled that void, it was launched on the 1st of November and it is the brainchild of  the current Coalition Government.

If you are looking to find out what saving and investment plans are available to you, then all you need to do is ask an expert.

MyMoney account

The Junior ISA is a very flexible account, and allows for tax-free savings and gives parents the option of how much they would like to contribute. The limit for contributions is £3,600 until 2014 after which the top level of contributions will be adjusted on a yearly basis. Rules that govern the Junior ISA have forced that any child with a Child Trust Fund are not eligible for a Junior ISA, this means that there are almost 5 million children born between September 2002 and January 2011 who cannot have a Junior ISA opened for them.

If you are interested in taking out plan that is jargon-free and effective, then the Junior ISA is one you should consider. You can save up to £3,600 tax free a year, which will be given to the named child when they reach 18.

HSBC have also entered the children’s saving market with their MyMoney account, which is a combination of MySavings and MyAccount. This savings account is open to any child that is aged 7 and the current account is available when the child is aged 11.

The MyMoney account makes it easy for children aged 7-17 to begin managing their own savings expenditure. With the MySavings account the money contributed will accrue interest on a monthly basis, and you are able to access the money saved at any HSBC branch using a cash withdrawal book that you will be provided with.

Cash card

While there are many plans for parents to consider, the one being championed by the government is the Junior ISA. If you are looking for a Junior ISA then the one on offer by Family Investments offers a very competitive interest rate, Click Here for more information and how to apply.

The MyAccount is also open to any children ages between 11 and 17, and this account provides the child with a cash card and there is also an option of a debit card for those children over the age of 13. There are many other options with this account that should encourage children to save and to encourage parents to teach their children the value of saving.


For More News