Children's savings account yearly interest allowance

[loca]

My 6yr old has an account w Halifax. �20 goes in every month by standing order from my bank account on behalf of the grandparents as they don't have an account. This account pays good interest however one of the deposits has to be by standing order a month, so it looks like me closing the account, as all the government will see is the �20 going out of my account by standing order every month into his account & not that the grandparents give me the money. In December even dropping the standing order to the minimum amount of �5, his interest will be over the allowed �100 interest for parents to generate for their child a year. If you are a parent, savings that you put in for your child which generate over �100 interest a year is deemed to be income for the parent and you have to pay tax on it.(as i say i doubt whether the government will believe that my son's grandparents give me the �20. The rest of the Halifax accounts that i could transfer it to without standing order rule, interest is not good. A Barclays acc looks good. But when i close the halifax & open one at barclays the account has to be in my name on behalf of my son. That will still leave the question, how do i prove that relatives,grandparents etc give me the cash to put into the account as relatives are allowed to save up to�4,000ish tax free (for all accounts open) a year, children are allowed a tax free allowance like adults if it isn't the parents who are putting the money in. My son has another account which i am trustee for however the only money which goes in that is from his other grandparent who is able to put in a standing order every month of �25 so i have proof that the money comes from her bank account and not from me or my husband & so it doesn't matter if her interest for that account generates over the �100 a year. Instead of buying more presents for my son with money given to him i would prefer to save for his future, any advice would be really appreciated.

[factor-fiction]

Phew, that was along question!
To get �100 interest pa there must be in the region of �1800 in the account- so presumably the money has been going in for several years now.
If you want to keep saving for your son for a long time maybe you could consider a different savings vehicle- eg shares witha 5-10 year horizon.
If his mum has an account she can also pay him a regular amount- the �100 interest applies separately to each parent's contributions. Alternatively could the parents have the book and pay money in by cash each month- or maybe quarterly?
Or suggest to your grandarents that they open a bank account. If they are pensioners won't their pensions be paid into teh bank now?