What to do with Student Savings

A question about : What to do with Student Savings

I asked a year ago and here I am again.
My daughter has Ј1000 in Premium Bonds. just over Ј2000 in an old ISA getting no interest and Ј6000 sitting in my Santander 123 current account getting 3% (2.4% net)
Please someone tell me where is the best place to put this to get the best return for her?

Best answers:

• Why your Santander, not hers?
  Why hasn't the old ISA been transferred or moved to the Santander account (or TSB)?
  The best rates are currently current accounts (3% - 5% AER) see the Top Savings Accounts near the top of the page. Only Santander will take the whole amount in one account.
• She already has a Student santander account. She doesn't have enough direct debits to qualify for a 123 account hence it being in ours which is full (Ј20000) so no benefit putting any more in there for either of us.
  Thats why I would like to get all her money into one account and make a bit of space for more savings in my own account.
  She does get 3% in the student account I think but only on Ј3000
• Our problem is lack of DD's. We don't have many so struggling to get the benefits of the 3 123 accounts
• You can create any number of DDs for yourself. You just need a couple of Tesco savings accounts and pull a bit of money into them. That's done by DDs. As Clapton has already said.
• Oh!!! Thanks. I hadn't understood the original comment. Great idea. Thanks again.
• Last question and I hope it doesn't sound too stupid. Is it ok for me to open an account in my name with my daughters money? It would be easiest as then she can keep her student account as well with Santander and keep the savings seperate but are there any legal implications?
• Lots of implications. Firstly, the money is legally yours when it is in your account. So for anything such as tax on income, means tested benefits, IHT etc, the money counts as yours. If you have a spouse and no will, the money would pass to your spouse. In any case, the money would form part of your estate
  If your only reason for thinking of doing this is so that your daughter can keep her student account, I can't see the need for anything complicated. Why can't seh just have her own current accounts? May be at TSB (5%, Ј2,000) and Tesco (3%, 2 x Ј3,000), if she'd rather not have 2 accounts at Santander.
  There would, however, be nothing illegal about your daughter giving you money.
• I have a similar question.
  We have been saving for our child's UNI education and have @Ј15k saved currently sitting in an ISA earning very little. Advice is not to use this up front to pay for fees etc. so want to lock away until he graduates in 3 years. Where is the best place to put it? We are also still adding to it monthly so was wondering whether a regular savings account for all of it? Any advice?
• Ahh OK thanks. So if we opened regular savings account for new money where is best place for the Ј15k. Don't want him to touch it until graduated in 3 years