Children's Regular Savings

ejv

What is this opening in "TRUSTEE BASIS"? Norwich&Peterborough online E- family saver doesn't allow , but normal (by post) Family saver allows this.
Could someone explain?:o
Thanx in advance:A

xylophone

A child can hold an account in his own name.
A parent can hold an account as 'bare trustee" for a child.
The "£100 rule" still applies if a parent has provided the money.

If a parent is holding the account in bare trust, although the capital and income belong to the child absolutely, the parent has control over the account until the child is 18 (16 in Scotland).

If the child is a non-tax payer and the total income arising on all non-tax privileged accounts where the parent has provided the capital is less than £100 per tax year, then R85 can remain on the account until the child is 16.

If the account is to remain in bare trust after the age of 16, then the R85 must be rescinded and any overpaid tax reclaimed on R40.

ejv

Holy smoke...that's latin& greek to me...
What I understood was, N&P's family saver is not a children's saver and doesn't have the £100 tax free interest.It is a parent's saver and taxed as per the parent's tax rate.
Then what does this "trustee basis" means on this account?
Could u please explain how this applies to a couple, who have kids below 10 year old?
Thanks in advance

xylophone

I have to say that having read the information on the N&P site i am rather puzzled.

On the one hand, they say that this account is only available to families with dependent children but then say that parents, grandparents or guardians can save as trustees on behalf of a child in this account.

However, if you and/or your wife are the account holder(s) then clearly it is your account and tax is paid according to your tax status.

If you can open an this account as trustee for your child, then the money in the account belongs absolutely to your child but if you as a parent have provided the capital then the £100 rule applies.

Remember that it is £100 per parent.

You will need to seek any further clarification from N&P.
This article is from 2009 so the information on available accounts is not up to date but may be worth a browse.
http://www.lovemoney.com/news/household-bills/tax/3399/how-to-maximise-your-childs-taxfree-savings

ejv

Thank u very much xylophone.
What I understood was it's just a taxable regular saver like First Direct or HSBC, but the individual should have children to apply for it.I was then confused by the trustee status, which didn't make any sense.

ejv

xylophone wrote: »

I have to say that having read the information on the N&P site i am rather puzzled.

On the one hand, they say that this account is only available to families with dependent children but then say that parents, grandparents or guardians can save as trustees on behalf of a child in this account.

Called N&P today and honestly, experienced a very good customer service.:j

E-family(online) saver cannot be started as children's saving and hence doesn't have tax benefit.In-branch(telephone/post) family saver has this option and can benefit from the £100 tax benefit(per parent).

They gave me the following option:

Start their Gold Current account, an in-branch family saver and an e-family saver.Each allows £250 pm @ 5%.Remit £750 each month into Gold Current account(as this needs minimum £500 pm remittance to be fee-free) and SO £250 each to other 2 family savers.All can be managed online once opened.
That's £750 @5% per month.
Each parent can do this if they wish, with potential of £1500 pm @5%:beer:
Comments and opinions please, from the financial wizrads:o