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Opening an internet savings account for another individual
philadam
Posts: 41 Forumite
My 80 year old mother has quite a bit of money with Lloyds at the moment and is earning very little in the way of interest. The way the savings market is at the moment the top rates are being earned with the likes of internet only based accounts like Kaupthing Edge (I have some money with them myself). I would like to move some money across for her to a Kaupthing account. She has no computer access so I would arrange everything on her behalf including the Lloyds online banking.
Has anyone had any difficulty doing this? Having gone on Kaupthing's website I see that they stipulate that the email address must be for the account holder, not shared and not previously used with them. I can set a new email account up for her no problem, but is there anything I'm missing in the way of pitfalls. This way of arranging a higher rate of interest would be ideal as she is not as mobile as she once was.
I should mention that I do have enduring power of attorney for her affairs.
Thanks for any thoughts or feedback.
Phil
Has anyone had any difficulty doing this? Having gone on Kaupthing's website I see that they stipulate that the email address must be for the account holder, not shared and not previously used with them. I can set a new email account up for her no problem, but is there anything I'm missing in the way of pitfalls. This way of arranging a higher rate of interest would be ideal as she is not as mobile as she once was.
I should mention that I do have enduring power of attorney for her affairs.
Thanks for any thoughts or feedback.
Phil
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Comments
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The only thing I think may trouble your mother is that you get little in the way of paperwork from KE. If your mother is like my folks (similar age), then she is probably attached to her passbook type account.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
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I guess you shouldn't have a problem in theory.
You might be worth looking at some better paying accounts with C+G (part of Lloyds), you might be able to keep branch access if that pleases your Mum, but not the top rates as of KE etc.0 -
KE do not allow POA accounts sadly otherwise that would have been nice and straightforward. Have you considered Icesave instead who do?0
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I guess you shouldn't have a problem in theory.
Thanked you by mistake. In theory there is a problem. People are technically not supposed to disclose login details to third parties even under POA. So to do things by the book, POA accounts or separate POA login is required. Sadly KE don't allow either.0 -
sloughflint wrote: »Thanked you by mistake. In theory there is a problem. People are technically not supposed to disclose login details to third parties even under POA. So to do things by the book, POA accounts or separate POA login is required. Sadly KE don't allow either.
Oh! :rolleyes:
Well I guess you have to read the T+Cs of each account, many banks allow operation under PoA, which is more complex to obtain nowadays. But then again some don't.
I'm sure trusting your son to run your account is more an "obvious in practice" option, regardless of technicality, we have to live in the real world here, a world where most non technical people keep records of their PINs and passwords on post-its
How say then do people manage with disabled relatives unable to communicate normally? It's perfectly legal for other's with PoA to manage their affairs. I know this having been involved several times with elderly family PoA management a few years ago. However you obviously have to deal with a bank/bs that doesn't have a problem, KE say they don't support accounts run by others.
I'd say best to deal with this with a branch account, as per my initial post, and speak to them with PoA and say you'll be managing the account directly.0 -
It works the other way too. The attorney can be vulnerable if things aren't done according to the book.I'm sure trusting your son to run your account is more an "obvious in practice" option, regardless of technicality, we have to live in the real world here, a world where most non technical people keep records of their PINs and passwords on post-its
It is legal yes but banks can be fussy especially with the web side of things. You have to choose quite carefully.How say then do people manage with disabled relatives unable to communicate normally? It's perfectly legal for other's with PoA to manage their affairs.
Probably easier although branch accounts don't always offer great rates.I'd say best to deal with this with a branch account,0 -
Would you have any suggestions of which banks are more helpful?sloughflint wrote: »It is legal yes but banks can be fussy especially with the web side of things. You have to choose quite carefully.0 -
Icesave, Sainsbury's and LTSB were by far the easiest.Would you have any suggestions of which banks are more helpful?
Halifax were ok but if the POA ever needed to have been registered then web access would no longer have been possible by the attorney ( no idea how that's going to work with LPAs now as they have to be registered from the start)0 -
Thanks for the replies. Having considered it I am going to do things properly and arrange the savings accounts through the proper power of attorney route, even if this does limit the product choice. I rang Lloyds TSB and they were very helpful regarding the online banking for my mum to get the money out. I now need to work out where to put it. It's looking like it will need spreading around 3 institutions to remain within the £35k compenasation limit so I have my work to do!
Phil0
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