Savings in Trust for children

GEC_2

I have 3 children and have invested £ 25 K for each.
From August I need to start drawing on 2 accounts for school fees etc. I want to place the money in a high interest account in trust for each child and link it to a current account from which I can draw by cheque.

A+L won't let me open a trust account, any other suggestions?

sc52

GEC wrote:

I have 3 children and have invested £ 25 K for each.
From August I need to start drawing on 2 accounts for school fees etc. I want to place the money in a high interest account in trust for each child and link it to a current account from which I can draw by cheque.

A+L won't let me open a trust account, any other suggestions?

Hi GEC,

Sorry, missed your post at the time, but I now find myself in a similar position and a search of the forum has dug your post out.

I managed to set up a Trustee account for school fees with the Woolwich back in November 2004. (No longer available but I belive that Barclays do one)

I had considerable trouble finding a bank/building society that did the sort of trustee account that I required. None of the bs/banks understood what I was after. They kept pointing me towards accounts for childrens savings where an adult could be a trustee. However, in my case the money isn't the childrens.

Even the Woolwich stated that they didn't do trustee accounts. It was only after I persisted and stated that they definately did them that the branch managed to track down somebody at their head office who agreed that they did.

To date money has only been paid in.

However, I am now at a point where money needs to be paid out - suddenly the disadvantages of a branch account have become all too apparent. The only way of making a payment from the account is to go into the branch (12 miles away) - not too bad if the money was only required for fees (3 times a year) but a real pain when it is intended to cover all other school expenditure including bus travel, trips, extra-curicular activities, uniform, food, stationary.....

So I have started looking for a more flexible trustee account, but other than Barclays (lower rates) with little luck.

Unless I find anything better, I will set up an A&L current account (5%) and transfer the minimum in monthly to qualify for the higher interest rate and then transfer in an amount to achieve the maximum allowed before the interest is reduced (2,500). Then prior to the payment of each terms fees I will transfer from the woolwich the balance required to cover them and leave the account with enough credit to meet all the extras.

Any alternatives please let me know.

Thanks

Simon