We have a maxed out stocks and shares ISA for our baby - what is the most effective non-term limited account that can be in her name? We're thinking it will be useful for birthday parties, clothes etc. Most of the payments will be on an ad-hoc basis from gifts etc.


Just get the child whatever deposit account you can find. There won't be any tax on the interest unless:

  • there is more than £100/year of interest on money that came from you (her parents), as opposed to grandparents, friends, other relatives etc.
  • there is more than the personal allowance (>£10K/year) of any interest

If you're just saving for parties, clothes etc it's unlikely you'll hit either limit.


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