Possible to open and pay into a fixed term investment for someone else?

[Deleted User]

My parents wanted to pay the uni tuition fees for my son, but I sent them the moneysavingexpert article on what a bad idea this usually is, so instead they want to put the same amount of money into a fixed term investment for my son, that will be available to him when he graduates.

What would be the best option? A lot of these investments require the whole amount of money to be paid in on opening them. We want to avoid my parents paying the money direct to his current account, and then counting on my son to open the fixed term savings account with out, it's not that we don't trust him, but teenagers ;-).

AnotherJoe

I dont see why you can't do this, I've opened a few Atom fixed term accounts which give you 7 days* and AFAICR theres no restriction on who can pay in any more than if, for example you gave me your sort code and account number, i could pay into that.


* dont like the "all in one go" accounts where you have to make one payment, 7 days gives you the ability to send a sum, check it got there and then send the rest using stored details rather than accidentally transpose a digit or three and pay the money into someone else's account.

[Deleted User]

When opening a fixed rate account, most banks(if not all) will ask you to nominate a bank account from which you will source the funds. This will need to be in the same name as the fixed rate account holder. So no, I don't think your son's grandparents will be able to transfer the funds from their own bank account to fund your son's fixed rate account.

Voyager2002

Dare I say it, but paying him a fixed sum every month so that he can concentrate on his studies without needing to take a job would probably be a better use of the money than a lump sum once he has graduated.

AnotherJoe

"so he can concentrate on his studies" - well, yeh, maybe :rotfl:

My first years grant cheque was spent at local hostelries in the first term

A job might be a good thing.