Trust Bank Accounts

Mumum

Thank you Xylophone. I’ve been at this all day and feel quite frustrated. I’m unable to open a trust savings account anywhere, it’s assumed the trust account will be subjected to withdrawals and so the interest is around 0.2% everywhere as opposed to up to 2.5% for a normal savings account (which can’t accept three trustees).

My only option therefore is to open up a Trustee current account and then invest the money outside of it. That is leading to further problems as I have called one bank to ask if the trust account could buy their bonds and we’re back to only an individual can purchase them. I’m so angry, what a waste of good interest. I did ting NS&I and their products are variable and currently around the 1% mark. They can be held in a trust (thank you for that!) but I’d better ring back and explain that it is three trustees incase that causes a problem. Skipton Building Society have been helpful and said their e-saver bank can be used as a trust (1.15%) and same for their 1.35% fixed rate bonds, though I don’t know why only some banks allow bonds to be purchased by trust accounts. Skipton are my best bet at 1.35% at the moment. Very frustrated at not being able to put the trust in a savings account though, a waste of money.

Mumum

Oh drat, this was meant to be posted on my other thread. Remember the trust doesn’t affect my benefits? That’s not a bad idea about the JISA though without going into too much detail that is not an option.

Mumum

Thank you Xylophone. I’ve been at this all day and feel quite frustrated. I’m unable to open a trust savings account anywhere, it’s assumed the trust account will be subjected to withdrawals and so the interest is around 0.2% everywhere as opposed to up to 2.5% for a normal savings account (which can’t accept three trustees).

My only option therefore is to open up a Trustee current account and then invest the money outside of it. That is leading to further problems as I have called one bank to ask if the trust account could buy their bonds and we’re back to only an individual can purchase them. I’m so angry, what a waste of good interest. I did ting NS&I and their products are variable and currently around the 1% mark. They can be held in a trust (thank you for that!) but I’d better ring back and explain that it is three trustees incase that causes a problem. Skipton Building Society have been helpful and said their e-saver bank can be used as a trust (1.15%) and same for their 1.35% fixed rate bonds, though I don’t know why only some banks allow bonds to be purchased by trust accounts. Skipton are my best bet at 1.35% at the moment. Very frustrated at not being able to put the trust in a savings account though, a waste of money.

xylophone

It seems from link above that NS&I Guaranteed Growth Bonds can be held in trust.

https://www.nsandi.com/guaranteed-growth-bonds

1.50% gross/AER Term
1 year
Issue 64

1.95% gross/AER
Issue 59
Term
3 years


You can save up to £10,000 in each issue.

Mumum

Thank you Xylophone. I’ll hopefully have about £30,000 to invest. Can I invest three times in the issue 59 do you know?!

grnglide

explain that it is three trustees incase that causes a problem.

Surely it is the trust that is operating the savings account not the three trustees opening a joint account between them.

xylophone

I think the OP means that the institutions are objecting to having three Trustees?

That said, relative is one of three trustees of a Will Trust with a Barclays current account.

Mumum

Some accounts have restrictions on the number of account holders, though I expect that’s just normal accounts allowing one or two for a joint account, I thought it better to confirm that three trustees were allowed. One Trustee account, I was told, had a maximum of three Trustee account holders so thought worth checking incase some only allowed two, just incase.

Mumum

Please could someone kindly advise how the interest on the bonds are paid? For example if I purchased 3 year fixed bonds at 1.95% sat on £30,000, would that yield £583 annually or at the end of the three year term? Thank you.

Mumum

I was all set to go with an NS&I index-linked savings certificate (inflation rate 1.8) to read that they haven’t been sold since 2011 and only current holders can renew them. It’s one of those days! At least I’m making headway - I think!