Strange condition on paying interest on a child's account

darich

My gf opened a bank account for her daughter when she was born(the daughter, not my gf!). My gf’s dad gave her £100 to open the account and at the time the bank was offering £10 for opening an account. The £10 was duly given. At some point later on the £100 was withdrawn leaving the £10 in the account. This is since 1994.

Now when my gf and her daughter went to the bank to have the passbook updated she was told that no interest was paid into the account because it was dormant.

I have a few questions.

• Is a condition of paying interest that the account must be used?
• When does an account become dormant?
• Also, if after a few years they decide that it’s dormant, then any interest they’ve paid in has been taken out – an unauthorised withdrawal – possible theft.
• If no interest has been taken by the bank then they’ve never paid interest on the account in other words deciding that it’s dormant from the moment it was opened.

I’m going to check this out with the FSA but I’d be grateful for a few opinions before I make a few calls and send any emails.

thanks

Farway

Is this a real bank, or is it a building society?

Some bank accounts have no interest paid at all, ot only .08% or some such, some also have minumum limits, often £100, maybe yours is one of these?

You would need to read the terms and conditions before you can start complaining, or may find the facts are no interest is due any way