Save for Grandchildren

ladykibby

Hi,

Can someone please help us.

We are talking of opening an account each for the grandchildren and us paying money in on a regular basis for them until they are 18 or 21. Can we open them in their names? Is there such an account as a Trust fund or such like?

Sorry to sound so thick but this is all new to us......:rolleyes:

Many thanks

Lynn11

Most banks/lenders have accounts such as this. I opened one up for my daughter last year in our local BOS and we pay in a bit of money whenever we received the child benefit. I believe that she will be able to use from age 14 or 16 and it is usually a higher rate of interest. When you set this up you will be ask to produce your grandkids birth certificate - money laundering rules.

Lokolo

Did you ever think to go to https://www.google.co.uk and type 'trust fund for children'? Because actually there is one lol.

Child Trust Fund, theres a link around here somewhere...

http://www.moneysavingexpert.com/savings/child-trust-fund-vouchers

read it! But I am not sure if you can open it, maybe only parents? Although I don't really know much about them at the moment (I am not having kids for at least 5 years!)

Reaper

If they were born recently the parents will have been given a voucher to open a Child Trust Fund with a small sum from the government. You can pay into that too, unless you prefer to keep it separate.

Read Martin's article for details - click here.

muddyfox470

I think the question is with regards to them being Grand Parents, so as far as I know they cannot open a CTF account, or pay directly into one? I thought CTF's were only for parents and their children.

You may however be able to hold a joint account with your grandchildren - one for each - and then remove your name when they turn 21. One problem here is that they will be taxed on any interest they will earn, because you are named on the account(if you are a tax payer). Most Building Societies would be happy to do this for you.

Can I just say that it's a very nice thing, and when they reach that age they will really appreciate the money - however they just need to be money savvy so they don't whittle it away too quickly. My parents saved up a little for me and it's grown ever since I've started working (part-time)

Reaper

muddyfox470 wrote: »

as far as I know they cannot open a CTF account, or pay directly into one? I thought CTF's were only for parents and their children.

Quoting from Martin's article which I linked to...

Parents, family and friends or anyone else can add a total of up to £1,200 a ‘year' to the Government contribution. The year starts on the child's birthday (apart from the scheme's first year, when it starts at account opening and ends the day before its birthday).