Cheque made out to children

macpep1

Hi all

My children (8 & 2) have been given a cheque from a family member in their own names, will my bank cash this as none of them have a bank account. I plan on putting most of it into a savings account for them but we are going to use some of the money on each of them. TIA

rb10

You can only pay the cheques into accounts that the children are named on, so they can't go into your current account.

Do they have savings accounts in their own names (or with you as a trustee?). If so, you can pay them into there.

If they don't hold any accounts, then you'll have to open one, in their name.

macpep1

No they don't have accounts in their names at all, I saw one that pays 6% but you are not allowed to withdraw from that so the plan was only to deposit some of the money and set up a monthly standing order to take advantage of this. Perhaps better going to the bank to see them.

rb10

See http://www.moneysavingexpert.com/savings/child-savings-tax-free

Primrose

Perhaps the intent of the relatives was that the money should go straight into the children's accounts and not be spent by you on buying things for them so that their savings funds can be built up for something longer term and useful. We have regularly sent birthday cheques to nieces or nephews and always made them payable to them by name so they had to be paid into their savings accounts. Having accounts in their own names gives them a sense of financial ownership and responsibility, and in my view, is to be encouraged.

Lokolo

Primrose wrote: »

Perhaps the intent of the relatives was that the money should go straight into the children's accounts and not be spent by you on buying things for them so that their savings funds can be built up for something longer term and useful. We have regularly sent birthday cheques to nieces or nephews and always made them payable to them by name so they had to be paid into their savings accounts. Having accounts in their own names gives them a sense of financial ownership and responsibility, and in my view, is to be encouraged.

Until they realise they have lots of money and go and buy fags and booze with it!

gozomark

Lokolo wrote: »

Until they realise they have lots of money and go and buy fags and booze with it!

even worse, they might spend it on non-essentials :beer:

PinkMascara

I haven't posted before but thought i'd join just to inform you, depending on who you bank with...

I bank with Alliance and Leicester and they seem to not care who the cheque is made payable too, a cashback site sent me my cheque made out to someone which was completely different to my name for my balance, It got cashed, also sometimes people either spell my surname wrong or get the wrong initial... these were cashed too no questions asked.

Jake'sGran

I opened accounts in the names of my two grandsons a long time ago. They are now 18 and 16. Naturally they weren't very interested but what annoyed me the most was that their parents weren't either. It's a different story now and funny too as the eldest, who has just started at Sheffield Uni never has enough and doesn't seem to have the saving habit having whereas his brother, who will be doing higher Maths in a couple of years likes having plenty in his account and has just paid cash for a specially built computer. It's been great watching them get to this stage!