Children's bank account

dwpn00b

Is it possible to open a children's bank account under their name? If so, will the parents be seen as the account holder still? Interest is free would be great if possible. 

This will be used for child benefit money for 4 siblings (all children under 10yrs old) in 1 account. Thanks

colsten

Not sure whether you are after a current or a savings account, and not sure for how long you want to keep the money in the bank. No bank will offer a single current or other account for 4 children (or for more than one). Current accounts are available from age 11, though Starling offer one from age 6. For longer term savings, a JISA for each child would probably be suitable.

jonesMUFCforever

Most high street banks offer children accounts but they would be in your name (individually) and under your control.
They offer flexibility in that you can withdraw funds from them.
Colsten has suggested a JISA which for long term savings is a good idea but no withdrawals at all until the child is 18 might be a problem for you?

xylophone

You cannot open a child account in four names.

You can open an account for each child with you as Trustee.
Example
https://www.bathbuildingsociety.co.uk/savings/personal-savings/Junior Saver

dwpn00b

No only 1 account is needed for the all 4 children's money to go in. The council is paying less housing benefit as they're using some of the accumulated child benefit towards the 11k income tariff which is unfair.

JGB1955

I don't see why that's unfair.  Child benefit isn't due to the children - it's due to the parent, as a contribution to the cost of raising children.  It looks like you're trying to divert the money into 'savings' for your children, then expecting the benefit system to top up your benefits to compensate.  THAT's not fair.

colsten

dwpn00b said:

No only 1 account is needed for the all 4 children's money to go in. The council is paying less housing benefit as they're using some of the accumulated child benefit towards the 11k income tariff which is unfair.

You can have the child benefit for all 4 children paid into one account - yours.

Child benefit isn't meant to be contribution to children's savings, but to sustain them on a daily basis - food, clothes, accommodation, education etc.

Like most working age benefits, child benefit contributes to the overall household income. It seems you are trying to fraudulently divert some of your household income. There are several safeguards in place against such fraud. Your best option is to not even try it but if you think you should give it a go nonetheless, they'll catch you eventually. Don't give your children a fraudster parent, please.

sheramber

Since you are providing the money in the account any interest received over £100 will be taxable as your income.
As you are the child benefit claimant the money os part of your income.

dwpn00b

Those who are saying fraud, it says it's disregarded https://www.richmond.gov.uk/services/housing/help_with_paying_your_rent_and_council_tax/make_a_benefit_claim/about_making_a_benefit_claim/income_for_calculating_benefit

eskbanker

That says it's disregarded from income, but if you've been accumulating it ("they're using some of the accumulated child benefit") beyond £6K then the means testing will kick in:

https://www.richmond.gov.uk/services/housing/help_with_paying_your_rent_and_council_tax/make_a_benefit_claim/about_making_a_benefit_claim/savings_and_capital

If under 60:

• If you have less than £6000 in savings and capital, this is ignored completely for HB and CTR purposes
• If you have between £6000 and £16000 a proportion of this will be calculated as part of your income