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

tallgirld

No it's NOT right for you to "request" where the money should go.

I think it's a cheek and if I were ever approached on where to put money which I CHOOSE to gift, I wouldn't put another penny in ANY account!!!

XRAT

Are we related? This sounds like my in-laws!


To keep the peace.., you could suggest a different account (but don't even think about making a rational argument to support it!)


If they don't want to buy into your suggestion, just accept that they're gamblers.

UrbanFox

Perhaps the following scenario would provide a good litmus test:

If the grandparents had bought your child a bicycle for Christmas, would you feel comfortable asking them to return it and buy a better one for the same amount of money in the January sales?

If so, go ahead & ask for cash - if not, I'd just say thank you kindly for the Premium Bonds :beer:

edinburgher

I do think maybe he could just be sending out a very negative message with this kind of selfish self centred theme, and a "moderator" too but theres no accounting for morals is there!

What is selfish about a parent wanting to make the best provision for their child?

You need to relax and have a mince pie :coffee:

JohnRo

The child would appreciate even more, as an adult, a substantial investment legacy built over several decades.

Far more than a few increasingly worthless bank tickets or even worse, rapidly depreciating lottery tickets.

Still, it's the thought that counts...

Jurassic_spark_2

As the aussies say. I think you should keep your sticky beak out of it.

As grandparents of three grandsons. One aged 2. One aged 1 in January, and one aged 5 months. Who will, by the time they all reach the age of 1. Have a nice little four figure sum in premium bonds to do with what they want when they reach 18. With the possibility of winning a prize just like their grandad.

My parents bought our two daughters premium bonds when they were little, Who were overjoyed when they had a small win.

Our daughters are very happy, that my wife and myself are keen to continue to contribute to the boys futures in whatever way we see fit.

Just be grateful that you have parents, who are happy to give your children money. Some children are not that lucky. They have money grabbing misers as parents.

steampowered

If you would only be putting the money in a Cash ISA anyway the difference in effective interest rate is probably pretty tiny. It will matter more if interest rates go up.

steampowered

Lawlesswasp wrote: »

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.

I think the question asked is perfectly reasonable.

The effective interest rate on premium bonds is 1.35%. The interest rate paid by many savings accounts is higher than that. It is only natural to suggest to the grandparents that the money could be working harder elsewhere, particularly if they are not financially savvy.

It does not mean that the person who asked the question is ungrateful, simply that they want the best for their chid. Of course if the grandparents want to continue using premium bonds that is their prerogative but it is certainly worth raising the issue.

LXdaddy

As lots of others have said - you *can* discuss it with the grandparents, but you can't *tell* them what to do with their gifts.

There are places more likely to produce a positive return on investment but Premium Bonds do offer the (slight) possibility of a significant win.

I would just leave it up to the randparents and allow your child to lookforward to a reasonable sum of money on the 18th birthday.

JohnRo

LXdaddy wrote: »

...
I would just leave it up to the randparents and allow your child to lookforward to a reasonable sum of money on the 18th birthday.

Well, given average inflation over the two decades about just over half the value or buying power of whatever money is put in to premium bonds now, barring any lucky wins.