Child's Account with Debit Card?

Cranberryberry

Perhaps this should go in the Family Forum but it seems to fit here better....

My Wife and I are expecting a baby later on this year and we've been Moneysaving to the extreme to try and sort out old debts etc and pay for a second car and all the other expenses.

We're trying to think about how best to split/spend money for the Baby - we will have a separate baby budget to pay for any 'little extras' and eventually will we will pay it's pocket money in here until it gets it's own account.

I can't seem to find an account which would be in the Child's name (ie using it's tax allowance), does one exist? Is a separate joint account the only way of doing this?

We already have a joint account (with Nationwide) and separate personal accounts with Santander and HSBC.

Thanks!

Cranberryberry

MrTomato

Do you mean opening an account in its name but you controlling it? I very much doubt you'll get one with a debit card like that, in fact I'm almost certain you won't.

You could open something like this: http://www.co-operativebank.co.uk/servlet/Satellite/1193206376531,CFSweb/Page/Bank-Savings?WT.svl=copy
and at the same time one of these: http://www.co-operativebank.co.uk/servlet/Satellite/1193206368743,CFSweb/Page/Bank-CurrentAccounts?WT.svl=copy

And then if you need to spend you'll be apply to instantly swap between the 2.

Besides, doesn't it not pay tax because money will be counted as a gift?

Cranberryberry

Thanks MrTomato - we will be opening a savings/Child Trust Fund account separately for putting birthday money etc aside but this would be for it to 'spend on' - just like our own current accounts.

I fear that the only option will be a basic account in one of our names: I'll have already paid income tax and the money 'given' to it will be less than normal levels so I was hoping to avoid paying tax on any interest, though it wouldn't be much.

jonesMUFCforever

Open a young saver account or its like in the child's name and register an Inland revenue form R85 to get gross interest.
No debit card with a savings account though.

Cranberryberry

Thanks to your both for your replies - I've decided to go for a second joint current account. I'm currently searching for one which doesn't require you to pay in your paycheck every month (as will be keeping my own current account and transferring £500 a month), they all seem to have T&Cs such as:

To open an account you must be a UK resident 16 or over and to have an account you must receive a regular payment (i.e. wage, salary, pension) which you must pay into your account.

I guess a basic bank account won't have this requirement though. Thanks again for your comments.