Saving protection and Child Trust funds

MrStephenWilliams

Hello All, does my child's trust fund savings (Nationwide) count towards my £85k of protected savings? and if so does it make any difference if my child is disabled and unable to access her money without a trust even beyond her 18th birthday? cheers in advance
Stephen

eskbanker

The FSCS protection is your daughter's own rather than forming part of your £85K, as covered at https://www.fscs.org.uk/industry-resources/deposit-protection-banks/

How does FSCS protect my child’s account?

If the account is an individual account held in the child’s name, FSCS protects up to £85,000 in total across all accounts they hold, either in their name or where they are listed as the beneficial owner (e.g., money held on their behalf in a client account) within the bank/banking group.

If the money is held in a child trust fund or junior ISA account, the compensation will have to be paid into another ISA, rather than being cashed.

[...]

The funds are in an account that is held for a bare trust, personal pension, SIPP, money purchase SSAS/money purchase or defined contribution OPS/client/pooled account. Is it protected?

Yes. FSCS protects eligible beneficiaries up to £85,000 for each beneficiary of the type across all accounts held in the bank/banking group. If any of the beneficiaries have their own account within the same bank/banking group, that may affect the amount they are eligible for, as they are only protected up to £85,000 in total.

refluxer

From : https://www.fscs.org.uk/industry-resources/deposit-protection-credit-unions/

"How does FSCS protect my child’s account?

If the account is an individual account held in the child’s name, FSCS protects up to £85,000 in total across all accounts they hold, either in their name or where they are listed as the beneficial owner (e.g., money held on their behalf under a trust arrangement). If the money is held in a child trust fund or junior ISA account, the compensation will have to be paid into another ISA rather than being cashed."