Bank account 18 yr old, no income?

sparkiemalarkie

Hi my son's Junior ISA finishes next week. He has amassed quite a bit of money for his age.

He is a full time student at 6th Form College and has no income. He does not have a student loan.


Is it possible for him to open bank accounts to make use of the 5% loop hole? Or will he need a regular income for this?


Any thoughts/suggestions would be fab


thanks


sparkie

grumbler

It has to be a regular monthly credit from any other bank, not necessarily 'income'.

sparkiemalarkie

grumbler wrote: »

It has to be a regular monthly credit from any other bank, not necessarily 'income'.

I'm probably thinking about when applying for the accounts - I seem to remember having to state my income..... I could be wrong though....


sparkie

pmjenkins

My son opened a TSB Classic Plus account just after his 18th birthday in July. He declared his future student loan as his only source of income!

xylophone

You mention "quite a bit of money" - remember that the amount that earns interest in these current accounts is limited and some of the accounts require direct debits.

Kim_13

TSB Classic Plus is worth a go. No DD's are required and occupation would be stated as student so they may accept him on the expectation of income in the future. 5% on 2k + he can dripfeed £250 per month into the monthly saver if he has more money than that.

sparkiemalarkie

xylophone wrote: »

You mention "quite a bit of money" - remember that the amount that earns interest in these current accounts is limited and some of the accounts require direct debits.

Sorry I have just realised what I am asking.....

Can my son open an interest paying bank account if he has no income?
Will he, for example , be allowed to open 3xBOS to be used purely as 'savings' accounts since he isn't earning at the moment?



"TSB Classic Plus is worth a go. No DD's are required and occupation would be stated as student so they may accept him on the expectation of income in the future. 5% on 2k + he can dripfeed £250 per month into the monthly saver if he has more money than that."
Just read your post again ...... that may well be the way forward...

thanks


sparkie

Kim_13

There is nothing to say he can't open an interest paying current account with no income, but each bank will make an assessment based on their own criteria and income (or lack of) will be a part of that.

With no income I'd imagine he has no direct debits so accounts requiring these are no good (eg. Club Lloyds.)

Does your son have an existing current account? He would need to cycle £500 through TSB each month to get the interest (and set his statements to paperless.) The money can be moved out of TSB and then moved straight back in again to meet the criteria. If not you could use your own account to pump his money back and forth each month, if you're both happy to do this.

If you're after an account that he can just put money in, leave it alone and receive interest, Tesco is the best I believe. That's only 3%, although on up to 3k and two accounts per person are allowed.

sparkiemalarkie

Kim_13 wrote: »

There is nothing to say he can't open an interest paying current account with no income, but each bank will make an assessment based on their own criteria and income (or lack of) will be a part of that.

With no income I'd imagine he has no direct debits so accounts requiring these are no good (eg. Club Lloyds.)

Does your son have an existing current account? He would need to cycle £500 through TSB each month to get the interest (and set his statements to paperless.) The money can be moved out of TSB and then moved straight back in again to meet the criteria. If not you could use your own account to pump his money back and forth each month, if you're both happy to do this.

If you're after an account that he can just put money in, leave it alone and receive interest, Tesco is the best I believe. That's only 3%, although on up to 3k and two accounts per person are allowed.

Thank you... I guess we will just have to apply and see which banks will accept him.
He doesn't have a current account already,

3xBOS will probably suit best as there are no required dd and the 'monthly pay in' money can be cycled through the accounts by standing order. I know it's not the best rate but better than the 0.5% that his Junior ISA will drop to.


Thanks for the help


sparkie