Open an account in the childs name. Children do not pay tax on the interest.

Hi Libby

Just a thankyou for the advice and the wonderful service you guys provide to us financially challenged plebs!

There are two options - either open a current account but please remember you will be credit searched when you apply; or you can open a savings account. Considering you will be depositing money into the account monthly and have a healthy balance, a savings account would allow you to gain interest. An easy access savings account allows you to deposit and withdraw money at any time with no penalties or restrictions. Currently the best internet easy access savings account is ICICI Bank paying 5.15% AER or Chelsea BS has the best branch-based easy access savings account paying 4.80% AER. Both providers are FSA regulated, however only Chelsea BS is a member of the Banking Code.

I would like to open a discrete account to pay for our children's school fees with deposits of 2K each month. This will be 24K per year, but withdrawing approx 8K for each of the three terms, but still retaining some monies for the following fees. We have 4K to open the account and this account will have 10K in it by the time school starts in September. Should I just open a current account for this considering the highs and lows the account will reach?

Thanks in anticipation!