I want to open a bank account for my niece who is a couple of months old (aged six months). Is any particular establisihment a better bet than others? Is it difficult under the money laundering legislation?
With rates going down rapidly at the moment, in my opinion, the best option for a child is saving certificates. They are for a 5 year 6 month term, interest is guaranteed for the term, no DIRT, no worries about bank solvency, and although uncompetitive up to now, are coming back into the reckoning.
i opened an Anglo Regular saver for my niece (2 yrs old) paying 8% p.a. I had to get a letter from her parents saying they were happy for the account to be opened. The account is also in both our names
I just tried to google child savings certificates and did not find anything useful. I have a 13 year old and I want to deposit 3000 euro that she can access when she is 18. The money is part of a divorce agreement and so ideally it will just sit there until she is 18 with no need for intervention from estranged parents. Just wondering if a child saving cert might be the answer and if Old Timer might point me in the right direction? If not any ideas where to get the best deal on a five year deposit? Thanks
Changeagent - I agree it is difficult to get information on saving certificates on the An Post website, it is badly alid out. You will get all the information you need at any post-office. Information leaflets are sually in their display stands and application forms are also available there. There is also a customer care phone number 1850 30 50 60.
Fungus - I agree First Active 5 year fixed term at 4.27% is as good as there is but would saving certificates run them close? If left for the full term of 5.5 years they pay 3.53% DIRT free which would be around 4.35% if DIRT applied. I suggested saving certificates for children because at present they are simple, attractive and straightforward. The money is securely tucked away and can be added to at any time. Saving certificates and First Active have different terms and conditions so their suitability depends on the individual. I think First Active fixed term accounts apply to over 18's so are not suitable for children (one can buy saving certs for a new born child). Also minimum investment with First Active is €5,000 so Changeagent would have to add €2,000 (saving certs minimum investment is €50). As a grandfaher putting away a few bob for the grandchildren, I have studied child accounts from many financial institutions. Lots of gimmicks and terms and conditions in them. With saving certificates you get what it says, straight and simple. Many parents nowadays open child accounts in the local credit union and for many years the savings earn paltry interest rates. If anybody can recommend a better place for child savings please let me know. I have 2 new grandchildren due in 2009 (so far).
As you said - They run close. I was thinking purely in terms of interest rates but as you said savings certificates may help encourage a child to save and get involved in the process.