Childrens Bank Accounts

[JohnH]

We would like to open childrens bank accounts. This is in part to increase our limits under the various guarantee schemes.

We have found that only a limited number of banks offer minor accounts and when they do they offer a low rate.

We also have a problem setting up direct debits to regular saving accounts (which pay a good rate) when we have a mandate on the account (i.e. it is only the parents which can withdraw the money from the account).

Does anybody know of a bank that pays good rates for children accounts ?

Is there any way around the problem of setting up direct debits when there is a mandate on the account ?

 

[Lightning]

Highest interest rate for kids accounts ...

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3.00% from €1 to €20,000
1.50% on €20,000+
Note 1: Instant access
Note 2: Account aimed at children under 12 but can be opened by anyone.
Note 3: Interest paid annually on the first working day after 20th November.
Deposit Protection: Irish Government Bank Guarantee Scheme until June 30th 2011, Irish Deposit Protection Scheme only from July 1st 2011.

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3.00% from €1 to €20,000
0.10% on €20,000+
Note 1: Instant access
Note 2: Account aimed at 12-18 year olds.
Note 3: Interest paid annually on the first working day after 20th November.
Note 4: ATM card supplied with account.
Deposit Protection: Irish Government Bank Guarantee Scheme until June 30th 2011, Irish Deposit Protection Scheme only from July 1st 2011.

We would like to open childrens bank accounts. This is in part to increase our limits under the various guarantee schemes.

Huh? The Irish government guarantee covers 100% of your deposit regardless of the amount. The safety of the guarantee itself has been discussed at length here.

We have found that only a limited number of banks offer minor accounts and when they do they offer a low rate.

Yeah, agreed, Permo is an exception.

We also have a problem setting up direct debits to regular saving accounts (which pay a good rate) when we have a mandate on the account (i.e. it is only the parents which can withdraw the money from the account).

Huh? Do you want your child to be able to withdraw cash? What age is the kid?

Does anybody know of a bank that pays good rates for children accounts ?

See Permo link above.

 

[marksa]

NIB also offer a Junior Saver paying 2.10% for any balance over €1000. The initial deposit can be a maximum of €5000, but after that there appears to be no limit. A good rate for demand deposit from a non-Irish Bank. From enquiring about this a while ago, I believe you can set the account up to have the parent mandated to the account - and should be visible on the parent's eBanking. I ended up not opening one as I went for regular savings via a long-term regular investment funds account instead. But I guess the difference with that is that while the funds are in the child's name it is really an investment by the parent in the child's future rather than an account that the child can take ownership/responsibility at e.g. 8 or 9 when they get their communion money. I think the PTSB or NIB one suits the child taking ownership.

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