what if our childs Jnr Cash ISA was mis sold to us.

shanecrehan

long story short we save money for our kids like most.
we wasnt happy with the interest rate so over the xmas period whilst in the bank shuffling some money around we asked about better options for our childs savings.
Our intention is to save enough for a deposit for a property for them both in the near future (we have property ourselfs so thought its a good idea)

anyway a property has become available and we cant get access to the money we've saved for our kids, because a xmas we were told the money would be better in a JNR ISA, @ no point was it explained to us that the money was locked away untill their 18th birthday.

is there anything i can do.

Naughty TSB for not explaining the product!!!!

xylophone

Your children each had non JISA/CTF child savings accounts for which you and your spouse provided the capital.

Presumably there were several thousand pounds in these accounts?

If the interest on these accounts was over £100 per annum ( or £200 if the money was provided by each parent), this interest was being taxed as yours?

http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/families/babsi.htm

The money belonged absolutely to your children - if you had used it to buy a property, then they would have had an interest in that property which would have had to have been held in trust - any income arising on their interest even though theirs would have been taxed as yours if over the amounts above - trust tax returns would have been required?

This has not happened - the money has been deposited in JISAs to which the £100 rule does not apply; as before, the cash belongs wholly to your children, the interest is now untaxed either on you or on them and they will have control at 16 ( if they wish) and access at 18.

https://www.gov.uk/junior-individual-savings-accounts/overview

Incidentally, I suppose that TSB did check that the children didn't already have CTFs?

pplchamp

Will be a fortunate kid to have a house at such an early age.

PeacefulWaters

shanecrehan wrote: »

long story short we save money for our kids like most.
we wasnt happy with the interest rate so over the xmas period whilst in the bank shuffling some money around we asked about better options for our childs savings.
Our intention is to save enough for a deposit for a property for them both in the near future (we have property ourselfs so thought its a good idea)

anyway a property has become available and we cant get access to the money we've saved for our kids, because a xmas we were told the money would be better in a JNR ISA, @ no point was it explained to us that the money was locked away untill their 18th birthday.

is there anything i can do.

Naughty TSB for not explaining the product!!!!

Who was going to own this property?

What did you do with your summary box leaflet that explains the no withdrawals rule?

Why haven't you exercised the 14 day cancellation rights in the terms and conditions?

brendon

I wouldn't worry. There are plenty of 'dream properties' on the market at the moment and there will be in 10-20 years. Your children can still buy a house at age 18, or spend it on something else (it is their money, after all.)

(we have property ourselfs so thought its a good idea)

I don't follow the logic here?

coyrls

Did you tell your bank that your children would need access to their funds to put a deposit on a property before they were 18? As this is such an unusual requirement you can't have expected the bank to have known that this was their intention.

atush

Children's JISas are better in equities than either cash or property.

ermine

shanecrehan wrote: »

Naughty TSB for not explaining the product!!!!

or was it naughty parents for not paying attention to what they were saying? A message has to be received and understood for meaning to be transferred. It's always easier to see what you are looking for, it's called confirmation bias.

The problem of confirmation bias – the tendency of people to seek evidence confirming an already held opinion and to avoid looking for that which might upset their carefully constructed mental models
[...]
Of course a rational market participant, faced with a theory built on a crumbling cornerstone will abandon their ideas and look for some new ones. As you’d expect, therefore, we do no such thing, clinging irrationally to the wreckage of our dreams as they collapse around us.