Nationwide Smart Limited Access end

alandaniel132

Nationwide smart limited access is no longer available.
Any idea what happened to current customer who holding this account?
Can we continue using it or need to close it?

rattle

I noticed the account is no longer available a few weeks ago I checked the account and all was well. I have just logged into my sons Nationwide smart limited access account and the money is still there.


We have not received any correspondence from Nationwide.

I would contact Nationwide, that is what I am going to do as the account rules allowed the account to remain open until the account holder was eighteen and a half.


I personally think they have stopped the account because of BOE interest rate increase.

xylophone

You will be advised by Nationwide in due course?

Incidentally, it seems to me that NW are on slightly dodgy ground with the bare trust aspect of the new Future account.

It is quite clear from the terms and conditions that the money in the account belongs absolutely to the child and is therefore taxed on the child (although if the money was given by the parents there would be the "£100 rule" to consider).

It is also clear that the adult (s) are acting as bare trustees.

The legal position is that the beneficiary of a bare trust has the absolute legal right to access and control at the age of 18, (16 in Scotland).

https://www.canadalife.co.uk/adviser/ican-academy/briefing-notes/bare-trusts-for-minors-trusts-briefing-note-canada-life

Assets in a bare trust are held in the name of the trustees. However, the beneficiary is entitled to their share of the trust assets once they attain the age of legal majority; this is age 18 except in Scotland, where it is age 16.

Are Nationwide giving the impression that they are colluding with the bare trustees to deprive the beneficiary of his legal entitlement?

https://www.thisismoney.co.uk/money/saving/article-6182299/New-account-kids-pays-3-5-parents-need-account-Nationwide-qualify.html

Tom Riley, director of savings at Nationwide, says: 'It came over loud and clear in our research that parents want to have control over when they hand the money to their child.

Alexland

xylophone wrote: »

Incidentally, it seems to me that NW are on slightly dodgy ground with the bare trust aspect.

My reading of the Nationwide announcement was that they were no longer selling new accounts for the withdrawn products such as Junior ISA and assumed they would need to continue providing them to existing customers even if the rate becomes unattractive. Or arrange to transfer them to another provider to continue which seems unlikely as child accounts become future adult customers.

Are you suggesting they will be removing the bare trust wrapper to convert into a new designated account? Surely this wouldn't be considered - it would be almost as outrageous as removing the withdrawn Junior ISA wrapper early.

Alex

xylophone

Are you suggesting they will be removing the bare trust wrapper to convert into a new designated account?

No - I should have made it clearer that I was referring to the new Future Saver - I have added to above to clarify.

https://www.nationwide.co.uk/products/savings/future-saver/features-and-benefits

Once the child has reached 18 years and six months old the money will transfer to an instant access savings account and the terms and conditions and interest rate applicable to that account at that time will apply. The account will remain in the name(s) of the adult(s) (with parental responsibility) until the adult(s) transfer the new account, into the child’s sole name.


Reading the account features as above, it is quite clear that the money in the account belongs to the child.

As such, the child has the absolute legal right to demand access and control at age 18 (16 in Scotland).

However, Nationwide have made no mention of this and indeed appear to be encouraging parents to regard this as an account to which they can deny access to the beneficiary for as long as they please?

alandaniel132

My Nationwide Smart limited access still active and visible in Internet banking.
However, unable to check if there is any interest above £5,000 as the interest will be paid on the anniversary of account open. Need to wait until March 2019 for me.