Kids get 6% ISAs! How does that work?
Discussion
Just had an one year bonus thingy ISA reach the end of term, meaning I'm now earning a staggering 0.5% interest on it.
With rates being so pathetic it's an effort to be bothered to switch it to something more worthwhile, but hey ho, trawling through now looking at rates of 1.35% etc if I don't want to lock the money up for any length of time.
And then I see, down at the bottom of the list, a Children's Cash ISA at 6%!
I don't get this, if they can offer sprogs 6%, why not human beings? Our money is the same shape and colour!
http://www.halifax.co.uk/savings/accounts/cash-isa...
6% tax free would actually be almost worth having.
With rates being so pathetic it's an effort to be bothered to switch it to something more worthwhile, but hey ho, trawling through now looking at rates of 1.35% etc if I don't want to lock the money up for any length of time.
And then I see, down at the bottom of the list, a Children's Cash ISA at 6%!
I don't get this, if they can offer sprogs 6%, why not human beings? Our money is the same shape and colour!
http://www.halifax.co.uk/savings/accounts/cash-isa...
6% tax free would actually be almost worth having.
)
Sure
http://www.hl.co.uk/shares/corporate-bonds-gilts/b...
Most available for purchase in an ISA.
Do look at the terms and details of each bond though.
You will see Tesco there for 4.6% for example.
http://www.hl.co.uk/shares/corporate-bonds-gilts/b...
Most available for purchase in an ISA.
Do look at the terms and details of each bond though.
You will see Tesco there for 4.6% for example.
Ari said:
I'm struggling to understand these. There's one that's for 36 years at 4%. How does anyone invest in that, 4% might seem rubbish in six years time and you're stuck with it for another 30 years!
There is a secondary market, which is why you can buy those in the list even though they have already been issued.Some will be more liquid than others etc.
Do some reading on yield, coupons etc.
I looked into the Child ISA at Halifax paying 6% as I had a balance to deposit for my little one after he was born. The rate sounds great but....
Once the balance is deposited you are unable to touch it until the child is 18 years old. Halifax don't offer 6% forever, they are free to chance the rate when they decide.
Consequently I could have deposited his money, and the following day they could have reduced the rate to 0.1%. It would then be stuck there for the following 17.5 years.
I ended up going for a Lloyd's savings account, paying 3% and giving you the option to move it any-time you wish.
Read the small print.
Once the balance is deposited you are unable to touch it until the child is 18 years old. Halifax don't offer 6% forever, they are free to chance the rate when they decide.
Consequently I could have deposited his money, and the following day they could have reduced the rate to 0.1%. It would then be stuck there for the following 17.5 years.
I ended up going for a Lloyd's savings account, paying 3% and giving you the option to move it any-time you wish.
Read the small print.
S10GTA said:
I looked into the Child ISA at Halifax paying 6% as I had a balance to deposit for my little one after he was born. The rate sounds great but....
Once the balance is deposited you are unable to touch it until the child is 18 years old. Halifax don't offer 6% forever, they are free to chance the rate when they decide.
Consequently I could have deposited his money, and the following day they could have reduced the rate to 0.1%. It would then be stuck there for the following 17.5 years.
I ended up going for a Lloyd's savings account, paying 3% and giving you the option to move it any-time you wish.
Read the small print.
That is very interesting, hadn't realised that (hadn't read it as it doesn't apply to me anyway).Once the balance is deposited you are unable to touch it until the child is 18 years old. Halifax don't offer 6% forever, they are free to chance the rate when they decide.
Consequently I could have deposited his money, and the following day they could have reduced the rate to 0.1%. It would then be stuck there for the following 17.5 years.
I ended up going for a Lloyd's savings account, paying 3% and giving you the option to move it any-time you wish.
Read the small print.
I've just opened one for Junior to put away some money he was given for being born. I certainly won't be sticking the full £3000 in there but Halifax can look after this money till hes 18 and we will see how much it earns in interest, it will be interesting to see how long they continue paying the 6% for, I imagine this rate will stay as it is as its good for headlines and you only get it if parents also open an account.
ringram said:
There is a secondary market, which is why you can buy those in the list even though they have already been issued.
Some will be more liquid than others etc.
Do some reading on yield, coupons etc.
So if you need to sell in one year, your actual return could be significantly negative.....(i.e. it's hardly comparable with the risk profile of a cash ISA!!)Some will be more liquid than others etc.
Do some reading on yield, coupons etc.
great line!sidicks said:
So if you need to sell in one year, your actual return could be significantly negative.....(i.e. it's hardly comparable with the risk profile of a cash ISA!!)
Exactly. When interest rates rise, the price of corporate bonds falls so you are locked in to the current yield (roughly).If yields were historically high then you might take a punt on them falling and making a capital gain. At the moment yields remain pretty low so seem (to me, at least) more likely to increase than decrease meaning you would make a capital loss.
The banks savings rates are terrible at the moment, you can get a much higher return with private lending. Our company for example offers a return of 6%pa long term (5yrs secured by first charge on property), up to 1%mth short term depending on level of investment. 5 and 6 figure levels though, not a couple of grand.
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