Open a Savings A/C for someone else's child that the child can access

AntheaShaw

Hi all,
I want to open 3 savings accounts for my 3 teenage goddaughters, but I want 'them' to be able to manage the account, deposit & withdraw and for other adults/relatives to deposit into. I would like it to be APP based (on their phones) - I am getting conflicting results from various web searches, some saying I need the birth certificates, or a parent to sign? Can anyone give me any advice - is it actually possible for me to do this, and if yes, can I set it up online? (COVID-19 restrictions etc.). The teenagers ages are 14 (twins) and 15 year old. Their Mum (single parent) is aware and is happy to encourage them to learn to manage their own money - as there are also some Birthdays coming up she would prefer money as they are lucky enough to have enough of everything else they need.
Any advice would be greatly appreciated. Thank you. Anthea

cloud_dog

Hi...Why can't the mother open the accounts in the children's names?

Additionally, did you know children over the age if 13 can open a Santander 123 Mini account by themselves, and all online.

https://www.santander.co.uk/personal/current-accounts/123-mini-current-account

Perhaps you could sit with them and walk through the process and account options if the mother is not able to 

AntheaShaw

Hi and thank you... the Mum could, though this is meant to be a gift and a ''surprise'' from me to the kids - they already have current accounts + cards - this is for their savings, money given to them by friends/relatives that they need to keep apart from their day to day activity. (I get that - I have savings accounts). I just wanted to set it all up for them and then give them the details, access etc. without stressing Mum out. Thank you for taking the time to respond though. 
I will leave the question up here as I would be interested to know if anyone else can suggest a way I can achieve what I want to do.

cloud_dog

It pays 3% once there is £1500 in there I believe.

Who do they currently bank with?  Might those providers offer any decent savings accounts, and may allow them to open them?

AntheaShaw

Good suggestion - thank you

lr1277

Another vote for allowing the parent to open and manage the account.
This is because if the child earns more than £100 interest in the tax year, the parent is liable for the tax, unless it is earned in a JISA. So whilst I don’t know the suns involved, this is an argument for the parent to set up the savings accounts or JISA accounts.

Eco_Miser

lr1277 said:

Another vote for allowing the parent to open and manage the account.
This is because if the child earns more than £100 interest in the tax year, the parent is liable for the tax, unless it is earned in a JISA. So whilst I don’t know the suns involved, this is an argument for the parent to set up the savings accounts or JISA accounts.

No. The parent is responsible for the tax if the money the interest is earned on comes from them.  Interest on money from grandparents, godparents, other relatives and friends is taxable on the child, and usually within the child's personal allowance, so no tax to pay.

tehone

You could set up Rooster Money accounts for them (possibly goHenry or HyperJar too ,I haven't looked.
Downside it is does have an annual fee for the card, but it is app based, and importantly comes with a bank sort code and number to allow payments in from anybody that has those details. The app allows you/the child to allocate money to different pots (so that saving pots) can't be spent via card

tehone

I've just checked and you may find you need to double check the details on the sort code more carefully - that might require intervention to make it go to the correct child (or maybe set up 3 accounts)

AntheaShaw

Thank you all, lots think about. Your suggestions are greatly apprecoated.

lr1277

Eco_Miser said:

lr1277 said:

Another vote for allowing the parent to open and manage the account.
This is because if the child earns more than £100 interest in the tax year, the parent is liable for the tax, unless it is earned in a JISA. So whilst I don’t know the suns involved, this is an argument for the parent to set up the savings accounts or JISA accounts.

No. The parent is responsible for the tax if the money the interest is earned on comes from them.  Interest on money from grandparents, godparents, other relatives and friends is taxable on the child, and usually within the child's personal allowance, so no tax to pay.

Thanks. Did not know that.