Saving Account for Grandchildren controlled by Grandparents

Tonylm

I would appreciate any help from you knowledgeable people. Is there such a thing as a savings account for grandchildren that can be controlled by the grandparents. My mother opened accounts for all her grandchildren in their name but at her address the idea being that neither the grandchildren, nor their parents (me and my sisters), knew about them until she wanted them to which was when the grandchildren reached 21.

We would like to do the same sort of thing for our grandchildren but the rules appear to be a lot tighter these days. Money would only be put in on birthdays and at Christmas, unless we were feeling flush, it would not be a regular monthly saving. I have found some suggestions on here to use National Savings accounts but having looked at these they are controlled by the parents even if we have put the money in so unfortunately those do not meet the criteria. Building societies I have looked at want to use the childs actual address so that appears to rule them out. Does anyone know if what I want is possible or I am seeking something that doesn't exist. Thanks in advance. Tony

McKneff

I would also be interested in this. So look forward to any replies.

I can only think of opening accounts in my own name and adding to them as you say then just giving them the money when they are 21.

rb10

The Save4It account at Halifax can be opened by grandparents as trustees for a child. You can put money in / take it out whenever you like.

Jake'sGran

I would go with the Investment houses, people like M&G and Fidelity. Some will acccpt £30 month but most, I think, are £50. Of course, they take lump sums in which case I would spread it around. Some of the funds they run have been around a very long time and have done very well except of course for the last year. But as it is for children you can expect things to have picked up after, say, the next five years. I have been saving for my two grandsons for a number of years but they are now age 16 and 18 and both will go to university. The money was intended to pay for university fees and their first car. It was great to see how happy my 18 yr old g/son was when he got his car a few weeks ago.

McKneff

I looked at the halifax but it was only 1.5%. Thanks rb10

Jakes Gran, brilliant, i have been looking for something like this for a while.
My grandaughter is just two so i was looking to invest £1000 for her for university or a car or a wedding. This sounds as if it might just be the one.
thanks for that

Tonylm

Thank you to all for the ideas. I looked at the Halifax but as well as being only 1.55% I also found, when I spoke to them, that the account is AUTOMATICALLY switched to the childs name on their 17th birthday and that they don't do accounts where I could keep control for a longer period. Unfortunately, as I can't commit to a monthly figure, I think I am therefore stuck with opening accounts for each grandchild in my own name and then adding a codicil to my will that any savings in these specific accounts are to be free of IHT. Best wishes, Tony