Dual signature account.

Xbigman

Hi.
I'm looking to give some money to my 17 yr old daughter. Does anyone know if I can open a savings account in her name but have it on dual signature with myself (so she can't blow it).
Regards



X

BenL

yes you can, most likely a branch based account would be the most suitable as more than 1 sig to operate is too hard to do on the internet.

Its a pretty standard thing and most should be able to help you out.

Ben

dunstonh

You say pretty standard but i think you will find it is not. I used to work with one of the big 4 banks and we refused to set up joint accounts with 2 signatures required as they were too expensive to monitor.

Of course, that doesnt apply to all and its been many years since I worked with a bank but when you consider how they have reduced staffing levels and checking is far less now, it may be harder than you think.

Murtle

if it is an issue to have it as dual signature - I'm assuming that means you both have to sign for withdrawls, why not have it that you can both access it and teach her the meaning/value of money and make her aware that you are able to monitor what happens with the account? and then randomly check and ask what she spent the money on!!

Quality father / daughter time, as you discuss the latest shopping spree over coffee

Xbigman

I want the account in her name only for two reasons. 1. She can claim the tax back as she has no income (she's at college). 2. There are rumours of redundancy at work and I don't want her savings with my name on.

After assorted fiasco's last year I insist on seeing her bank statements and have told her this will continue until she's 19 (the point where I'll only supply her food/housing and not spending money).
Regards



X

lipidicman

You could open an A&L online account in her name - then when the account comes through change the pin so only you know it - BINGO - in her name but she cant access it anymore - but also have try to get her to take responsibility otherwise there is no point giving her the money

Also remember that If the money earns interest over £100 it will be taxed as yours (I could be wrong as the cutoff age might be 16 here)

amandathepanda

The problems arise when she wants to withdraw any money. You can't have cashcards for withdrawals for the servicetills. You would both have to go in to the bank to take out the money, which can be a bit of a hassle.

lipidicman

But with the A&L account you dont have this problem - YOU can log onto the internet and move the money to her linked current account - perfect?

newfoundglory

Xbigman wrote:

I want the account in her name only for two reasons. 1. She can claim the tax back as she has no income (she's at college). 2. There are rumours of redundancy at work and I don't want her savings with my name on.

After assorted fiasco's last year I insist on seeing her bank statements and have told her this will continue until she's 19 (the point where I'll only supply her food/housing and not spending money).
Regards

Okay, this seems to make more sense now - but I don't think what you are suggesting is possible.

Banks can (or will at your request) for kids below a certain age, require parental consent for withdrawing money from the account. As far as I know, this isn't possible in this case; because your daughter is over 16. However, if this had been possible you would have been able to have it in her name only, but still require your consent, and thus have the tax benefits of it being only in her name.

Banks do offer extra interest to those under 18, 21 and some even higher - however most if not all will allow a single name only and not allow any form of joint signing on these "special" accounts.

So, onto the alternative.

I think the only thing you are going to be able to do is open something like a normal joint savings account (in both names) if you want good interest. However, you WILL lose the tax benefits of your daughter being a non-taxpayer. Although you could get half the interest paid gross, the other half will be taxed at your own rate of tax. So it will be half-and-half, as as far as I know you will be taxed on at least part of the interest.

You should also make yourself aware of the tax rules regarding parents making gifts to children below the age of 18... because she still might be liable for tax on the interest again at your rate of tax when you exceed a certain amount. These tax rules were put in place to prevent parents from just offloading their savings to their kids to prevent paying tax; however they don't apply to other family members such as grandparents or anyone else.

Xbigman

I'll have to go to the local branches of a few banks/building societies. It is her money and not me trying to pull a fast one. I just want to stop her blowing it all in five minutes.
I got the idea I could do this after seeing in the newspaper that Charlotte church was blocked from spending her money by her parents until she was 25. Supposedly that was dual signature.

When my daughter is 18 in Nov she gets some money from her grandparents (couple of grand) and I know big spending plans are already in hand. Its irresponsible for a college student to do this but that carries little weight.

I also have a problem in that she cannot ditch her Natwest current account. Long story but she is entitled to EMA but the college lost the acceptance form and she's still waiting for it 10 months later.

Problems, problems, problems...
Regards



X

lipidicman

You can open a second current account and leave the old one open. I would expect that Ms Churches funds are held in a trust/invested until that date - I dont think they will be in a savings account (or not all of it) - we are talking a lot of money there.

Did you consider the A&L account I mentioned - great interest rate and you can limit the access by witholding the pin number (it can only be operated on the web)