Can we tell our child's benefactors which account to put cash in?

dw1

Maybe you could engineer a conversation about how you save your OWN money...

"we thought about putting our money into premium bonds like you have for our daughter, but we put it all in interest-paying accounts instead because the returns on premium bonds are rubbish"

jimjames

winston_1 wrote: »

Why an ISA for goodness sake? Children rarely earn enough interest to pay tax so the tax free status of an ISA is irrelavent. Much better to look into children's accounts and do sign the form to not pay tax.

A JISA invested in S&S would almost certainly be better than premium bonds or cash savings account.

If the parents pay in too then ISA is relevant as the interest will be taxed as their money if it is over £100. (interest on their money not the grandparents)

Lawlesswasp wrote: »

Your child's kind hearted generous Grandparents have chosen to give a generous gift to your child and all you can think of is getting the best return!!

I find this comment rather bizarre.

Surely as a parent you want to do the best you can for your children. If that is the difference between getting the best return and below average then you'd want to make sure your children had the best return.

There are ways of doing it and broaching the subject but it may be that the grandparents have no idea of the better options.

I do find it rather strange suggesting the grandparents are getting a buzz from checking the premium bonds for the grandchild and that is their motivation for doing it. Surely if they want that excitement they should buy PBs in their own name.

Primrose

I think it would be ungracious to ask for the money to be invested in an ISA when they have specifically said they wanted the money to go into premium bonds for your child. . Just be grateful that they wish to do something financially for him/her. By all means let them know that your own child investment will be going into an ISA because..........
Then they can take the hint, or not, and ask that future contributions go into the same pot....or not, as the case may be.

gaving7095

I don't see any moral issue personally, also I think it should be fine for you to request that they pay into the ISA instead - meaning that if I was giving the cash I'd be happy to change where it goes based on the parents' wishes.
There is, however, always a valid concern that any request to change may seem ungrateful - so if in your position I would leave well enough alone.
As other posters have said, can't you simply cash in the Premium Bonds then pay the money in yourself?

Alternatively just stop fussing & let your daughter decide when the time comes :-) Although unlikely, premium bonds can pay out large "prize" sums so possibly this is what her grandparents are hoping for.

Happy Christmas.

enjoyyourshoes

PB may be 'historic' grandchildren option they have merely fallen into or maybe not. Best to have open discussion with them. There are other options too rather than ISA, I will plonk in Junior SIPP's into the mix. Its very long term , it introduces her to S&S and demystifies them, and may get her into considering saving for her retirement. Tax relief too.

Lawlesswasp

jimjames wrote: »

A JISA invested in S&S would almost certainly be better than premium bonds or cash savings account.

If the parents pay in too then ISA is relevant as the interest will be taxed as their money if it is over £100. (interest on their money not the grandparents)



I find this comment rather bizarre.

Surely as a parent you want to do the best you can for your children. If that is the difference between getting the best return and below average then you'd want to make sure your children had the best return.

There are ways of doing it and broaching the subject but it may be that the grandparents have no idea of the better options.

I do find it rather strange suggesting the grandparents are getting a buzz from checking the premium bonds for the grandchild and that is their motivation for doing it. Surely if they want that excitement they should buy PBs in their own name.

Nothing Bizarre about thinking it selfish that one would wish to make a return on a gift when this person is obviously driven by greed!

Rather like selling a present on Ebay to make a profit
Point I am making is the OP should be grateful enough with the gift.

And with regard to the Buzz the Grandparents would get I find your response of a similar nature to the OP Why cant someone gain pleasure in watching the premium bond gift to see if it has one, there are some people left today who strange as it may seem are happy to see someone else win something without them winning, they call it selflessness, sadly a dying quality!

Lawlesswasp

jimjames wrote: »

A JISA invested in S&S would almost certainly be better than premium bonds or cash savings account.

If the parents pay in too then ISA is relevant as the interest will be taxed as their money if it is over £100. (interest on their money not the grandparents)



I find this comment rather bizarre.

Surely as a parent you want to do the best you can for your children. If that is the difference between getting the best return and below average then you'd want to make sure your children had the best return.

There are ways of doing it and broaching the subject but it may be that the grandparents have no idea of the better options.

I do find it rather strange suggesting the grandparents are getting a buzz from checking the premium bonds for the grandchild and that is their motivation for doing it. Surely if they want that excitement they should buy PBs in their own name.

Nothing Bizarre about thinking it selfish that one would wish to make a return on a gift when this person is obviously driven by greed!

Rather like selling a present on Ebay to make a profit
Point I am making is the OP should be grateful enough with the gift.

And with regard to the Buzz the Grandparents would get I find your response of a similar nature to the OP Why cant someone gain pleasure in watching the premium bond gift to see if it has won,there are some people left today who strange as it may seem are happy to see someone else win something without them winning, they call it selflessness, sadly a dying quality!

tgroom57

MSE_Joanne wrote: »

We have a small child and we opened an ISA for her which has a decent savings rate. However, every Xmas and birthday her paternal grandparents invest money in her name into premium bonds, which have a much lower chance of a return than we can get with the ISA. We would prefer they pay the money into the account we set up as we feel it's our duty as her parents to get her the best return on her money while she is young. Is it right for us to request the money they give is paid into the ISA?

we feel it's our duty as her parents to get her the best return on her money ...
Errr, almost. But no. It's your duty to make best provision for her future. Mostly that can be interpreted as money, but if there is goodwill in the family - in this case with the grandparents - then goodwill trumps any amount of money.
Premium Bonds are a reminder that you don't know what's around the corner, even when you think you've got life all mapped out.

doctorblunkett

Lawlesswasp wrote: »

MSE Joanne
I noticed your posting purely by chance after opening my MSE regular email newsletter and stumbling across your posting.

So I incensed was I that I had to sign up and join the forum so I could reply!
Pardon me for saying this but I have never ever witnessed a more selfish self centred question before.

Your child's kind hearted generous Grandparents have chosen to give a generous gift to your child and all you can think of is getting the best return!!

What about the feelings of these nice Grandparents and as others have mentioned they may indeed take great pleasure in watching to see each week if the bonds have provided a win!


You chose to come onto a forum! To ask everyone what you should do, again as others suggest "Grow up" and speak to her Grandparents adult to adult although I know what I would do if you were to approach me!

Sorry but you seem like a fine example of what is wrong with our society today... Greed & Selfishness!

This is indeed a Moneysaving website, and we are all here to save money, but feelings matter far more than the odd few saved £'s

A simple "no, I don't think it is appropriate" is more suitable than aiming vitriol at someone who is asking a simple question. shameful

Lawlesswasp

doctorblunkett wrote: »

A simple "no, I don't think it is appropriate" is more suitable than aiming vitriol at someone who is asking a simple question. shameful

Hahaaa
Forums would be very strange places if all replies were so short