Opening a UK childrens savings account but living abroad

linak

Hi I am a British Expat currently living in the US and I want to open a UK savings account for my 1 year old twins, so family back home can give money for Christmas, birthdays etc. Does anyone know what the best type of account is and do they have to be UK residents for them to hold an account? Or would the best solution be for grandparents residing in the UK to open a children's savings account for them? TIA

xylophone

This has been asked many times and the consensus seems to be that banks and building societies are very reluctant to provide savings accounts for non-resident children.

Apart from that, interest rates here are very poor at the moment.

It might be easier for the relatives just to transfer a lump sum to you once a year and for you to open accounts for the children in the US?

Or they might consider setting up a bare trust for each child in a stock market type investment?

http://www.sit.co.uk/products/investing_for_children/features/questions_and_answers/

innovate

xylophone wrote: »

Apart from that, interest rates here are very poor at the moment.

What makes you think the US has any better ones?

xylophone

What makes you think the US has any better ones?

I don't! I know nothing at all about interest rates in the US - I was merely pointing out that interest rates, even for children are not great!

But

a) the OP appears to be thinking of a savings account of some type

b) from what other posters have reported at various times, it is very difficult to find an account here for non-resident children

c) if it has to be cash, it seems likely to be easier to make a yearly transfer and for the parent to open an account in the US.

If I were a grandparent with that sort of timescale, I think I'd be inclined to go the IT route.

atush

Four very young children, I would ALWAYS go the IT route. So an investment trust re:acct for the child could be in order.

And I think that will able to be set up for non resident children. hopefully you still have a uk bank acct that you can use to drip feed the money in?

linak

Thanks for the information, the IT route is definitely something that I am going to look into. Interest rates are pretty poor in the US too. We already have a college fund set up for them in the US. My reason for asking about UK savings accounts is more for ease for relatives who want to give them some money for birthdays etc and some of my older relatives still like to write cheques and write them in my sons' names rather than to me!. I still have a UK bank account, so I do use xetrade to transfers monies back and forth etc.

xylophone

My reason for asking about UK savings accounts is more for ease for relatives who want to give them some money for birthdays etc and some of my older relatives still like to write cheques and write them in my sons' names

Your parents / you might be able to set up an account for each child with Nationwide International?
http://www.nationwideinternational.com/documents/child_trustee.pdf
http://www.nationwideinternational.com/

BeachNut

If you can use a UK address you can open a normal child's savings account at a UK bank/building society. Just forget to mention that you are non-UK resident...

linak

BeachNut wrote: »

If you can use a UK address you can open a normal child's savings account at a UK bank/building society. Just forget to mention that you are non-UK resident...

I did think about that but I have to take in their birth certificates which states that they were born in the US and so I don't know if that would raise suspicion etc?

BeachNut

They usually ask to see a UK passport of the child to prove id, which would also show born outside the UK. Certificate showing same shouldn't be a problem.