can i loan my child money

K_S

@baron777 https://forums.moneysavingexpert.com/discussion/5871339/kids-savings-account-v-overpaying-mortgage/p1

xylophone

Not when it was being trasnferred back to the parents account.

The point I am making is that from the moment the parent put the money into this account (which as I understand it is in her sole name and under her control as she is now over the age of 11), it belonged and belongs to her.

https://www.hsbc.co.uk/savings/products/mysavings/

It is clear that it was she who  authorised the attempted transfer to her parent's account.

HSBC have blocked the transfer ( either because the amount has tripped a security algorithm or because they suspect (with justification ) that the account is being used by an adult for his own savings?

elsien

powerful_Rogue said:

xylophone said:

As the bank sees it, it's the daughter's money.

It is the daughter's money - it is in her account and the OP freely placed it there.

Not when it was being trasnferred back to the parents account.

OP, for what reason did you loan your 14 year old daughter £3000?

The OP strongly suggests that it wasn't a loan and that the parent was using the child's account to get a better interest rate for their own savings. The bank would appear to have noticed and to not be best pleased. 

baron777

thanks for all the comments, i would like to clear a few things up as it seems people are assuming that this was a loan, this is not a loan, it was plain and simple asking my daughter to look after £3000 for me, until i needed it back, and yes i did benefit from the account having a better interest rate than most other places i could have put it, but again this is not illegal, (maybe immoral) its a loophole which i have taken advantage of.
we were asked to visit our local branch yesterday, and they were asking why i was paying money in and then taking it out again, but once i explained the situation, and they spoke to the fraud department, they unblocked my daughters account, i think they were concerned because of the large amount be withdraw (which flagged up as suspicious) and the fact that the account holder was a child, i accept that banks are now being more vigilant these days with regard to fraud, this has upset my daughter and as a result she is going to leave HSBC and take her business elsewhere. 

eskbanker

baron777 said:

it seems people are assuming that this was a loan, this is not a loan

I think most posters were more than capable of understanding what your intentions were, but you did title the thread "can i loan my child money"!

warby68

baron777 said:

thanks for all the comments, i would like to clear a few things up as it seems people are assuming that this was a loan, this is not a loan, it was plain and simple asking my daughter to look after £3000 for me, until i needed it back, and yes i did benefit from the account having a better interest rate than most other places i could have put it, but again this is not illegal, (maybe immoral) its a loophole which i have taken advantage of.
we were asked to visit our local branch yesterday, and they were asking why i was paying money in and then taking it out again, but once i explained the situation, and they spoke to the fraud department, they unblocked my daughters account, i think they were concerned because of the large amount be withdraw (which flagged up as suspicious) and the fact that the account holder was a child, i accept that banks are now being more vigilant these days with regard to fraud, this has upset my daughter and as a result she is going to leave HSBC and take her business elsewhere. 

So HSBC have acted to protect your daughter and this was a direct result of your own actions in using her account for your own ends - but your daughter is upset by them and leaving.
I'd be annoyed with you not the Bank but there we go.
Perhaps telling your daughter you were bending the rules for your own gain and apologising for the upset might be fairer rather than blaming the bank.

Sorcerer2018

You should not have put your14 year old daughter into this situation for just £75, most people don't normally ask somebody else to "look after" their money, unless they are trying to dodge something or gain some advantage for themselves., and with your daughter being a minor that make's it worse. It certainly is not the fault of HSBC. Why not just give her the £3000 so she can spent it when she needs it, for a car, university etc.

xylophone

 i would like to clear a few things up as it seems people are assuming that this was a loan, this is not a loan, it was plain and simple asking my daughter to look after £3000 for me, until i needed it back, and yes i did benefit from the account having a better interest rate than most other places i could have put it, but again this is not illegal, (maybe immoral) its a loophole which i have taken advantage of.

Methinks the OP doth protest too much.....

Carrot007

baron777 said:

 this has upset my daughter and as a result she is going to leave HSBC and take her business elsewhere. 

In other words HSBC said you broke the terms and conditions of the account and would close it unless she went elswwhere.

Malthusian

baron777 said:

but again this is not illegal, (maybe immoral) its a loophole which i have taken advantage of.

It's not illegal, but it's not a loophole either. A loophole is when you do something that there should be a rule against but isn't, not when you deliberately break a rule and get caught. If you'd got away with it you could argue there was a loophole. Instead you've just caused yourself and your daughter a load of grief in attempt to gain a trivial amount of interest, and tainted her early experience of the financial system.