Setting up a savings account for a grandchild

hirsties

I have two grandchildren and want to set up savings accounts in their names - I don't want to save money for them in my name for tax reasons.

I know they already have savings accounts set up by their parents, but for reasons I'd rather not go into I'd prefer to keep the accounts with me as a signatory.

Is it possible to do this, and if so what information do I need for the bank/building society?

Thanks very much.

mum2one

you can be a trustee, my father is a trustee on an account for my daughter, we just took in the standard ID for him, and for daughter, her birth certificate.

We have that account with halifax thou most banks / buildings society can do it for you, just ring and make an appointment, there tell you from there what ID your need x

xylophone

It is possible for you to be a "bare trustee" on an account but be aware that money put into the child's account will belong to the child absolutely and that he will have the absolute right to access and control at the age of 18 (16 in Scotland).

If the child is a non tax payer, the R85 should be completed - the account provider may insist that the parent signs this.

Once the child reaches the age of 16, the R85 must be rescinded and any overpaid tax reclaimed on R40. http://bank.virginmoney.com/savings/learn/childrens-accounts/ may be of assistance.

As interest rates are dire, you may prefer to consider a stock market based investment held in bare trust - example here http://www.sit.co.uk/products/investing_for_children/features/how_to/