Savings for 17 years olds

KevinaT7

Is there anywhere I can open a savings account for my 17 year old, where I stay in charge of it? As at present money is sitting in an adults account earning minimal interest. Thanks

xylophone

Is this money a bequest to your son? Or a gift from a friend or family member?

KevinaT7

It’s neither - it’s just the money we’ve been saving for a while. I’m only getting round to this now 😬 as it was in a child’s account until 16. 

MallyGirl

There is basically nothing for 17 year olds as they are soon to get control anyway.

KevinaT7

Thanks - that seems to be the way but just wanted to check. 

It just seems that although the
money is for them - I don’t want to just hand it over and hope they don’t blow it.

eskbanker

KevinaT7 said:

It’s neither - it’s just the money we’ve been saving for a while. I’m only getting round to this now 😬 as it was in a child’s account until 16. 

KevinaT7 said:

Thanks - that seems to be the way but just wanted to check. 

It just seems that although the
money is for them - I don’t want to just hand it over and hope they don’t blow it.

This is probably where xylophone's questions were heading - if it's their money (as it is if it's been in an account in their name) then they are legally entitled to access it at 18, i.e. you're not allowed to withhold it, and it should still be in an account in their name if that's where it was until 16....

MallyGirl

I guess every 'child' is different but I am always a bit surprised when parents fear their offspring will just blow it. We have had 18 years to teach them about how money works. My DD has recently turned 18 and I can't wait to sit her down and hand over the money I have been saving for her - it will give her access to so many more opportunities at uni and beyond. I am only holding off as I know my Mum has some savings for her too and I want DD to get that first as it is a big thing from Mum but will be smaller than my pot.

eskbanker

MallyGirl said:

I guess every 'child' is different but I am always a bit surprised when parents fear their offspring will just blow it. We have had 18 years to teach them about how money works. My DD has recently turned 18 and I can't wait to sit her down and hand over the money I have been saving for her - it will give her access to so many more opportunities at uni and beyond. I am only holding off as I know my Mum has some savings for her too and I want DD to get that first as it is a big thing from Mum but will be smaller than my pot.

This is of course the key distinction - if you (and your mum) want to control when that money is accessible to the child, you save it in your own names and can then choose at what point (if any) you hand it over.  On the other hand, if the money is in the child's name (as with OP), then legally it's theirs, and accessible at 18 regardless of the parents' desires/concerns/fears....

MallyGirl

All her savings (from me and Mum) are in her name not mine. I have just done the admin. They are all hers now - we just have a pile of post to process and lots of KYC processes to go through to transfer to her control.

eskbanker

Fair enough, I guess I was taking reference to 'hand over money' literally - if someone already owns something then to me it doesn't need to be handed over as such, but access to it may do.  Perhaps this is just a semantic distinction but the law is clear....