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can i loan my child money

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  • powerful_Rogue
    powerful_Rogue Posts: 8,377 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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?

  • K_S
    K_S Posts: 6,880 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    edited 8 June 2021 at 10:19PM

    I am a Mortgage Adviser - You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. 

    PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.

  • xylophone
    xylophone Posts: 45,628 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 9 June 2021 at 11:42AM
    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
    elsien Posts: 36,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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. 
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • baron777
    baron777 Posts: 20 Forumite
    Fourth Anniversary 10 Posts
    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. 
  • Sorcerer2018
    Sorcerer2018 Posts: 143 Forumite
    Third Anniversary 100 Posts
    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.
  • Carrot007
    Carrot007 Posts: 4,534 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    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.
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