can i loan my child money

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.

dunstonh

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

I'm not sure why you refer to criminal law.   It certainly isn't illegal (perhaps you meant unlawful - although its not really unlawful but could result in legal action, albeit highly unlikely for the amounts involved).   it is not a loophole.   It is a breach of the terms and conditions.   

 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. 

Yet you were effectively committing a form of fraud.      
You have taught your daughter a bad lesson and it's an indictment to the world we live in today where some people look to blame others for their own failings.

baron777

the bank didnt tell me i had broken any of their T&C's, it was more that it was  large amount being transferred that triggered their suspiciion, i'm sure if i had, they would have told me. i had a similar situation recently where i was paying a builder, by bank transfer, £5000 who had done some work for us, my banks fraud dept at santander called me straight away to ask if it was me making the payment and if i was happy to do it, and ran a lot of checks to make sure i wasnt being scammed, which i appreicated. isn't the reason that we are all on this forum and using the site, to make money work for you, thats all i was doing, and i dont feel bad for doing it and would tell others to do the same if they asked me, as i see it, its much better than people that put all their savings in a current account (earning 0.01%), never switch banks, or energy suppliers, and auto re-new without comparing. i have done nothing wrong

warby68

So why do you appreciate Santander running checks to protect you but not the other bank doing the same for your daughter?

baron777

warby68 said:

So why do you appreciate Santander running checks to protect you but not the other bank doing the same for your daughter?

because HSBC just blocked my daughters account without even speaking to her, she had to phone them to ask why it had been blocked, and after being on hold for ages and transferred around different departments she was told to go into branch and provide ID, as opposed to santander phoning myself (the account holder) and verifying it was genuine over the phone, without having to block the account. 

warby68

I agree it was more convoluted but that's because there were different reasons for their concerns. However it was a security issue nonetheless.
A Bank may not necessarily discuss all their reasons for concern with you either.
I know you are convinced you are in the right but the background is still you using your child's account to game the system, not something that's promoted here. Offers, loopholes maybe but using someone else's account for your own purposes certainly not. In the thread you tried out the loan idea, the 'safekeeping' idea but none of them really hold water especially when the other party is a child - you're clearly in charge. Then you went back to what was probably the truth, a way for adults to get better interest and that you were promoting it. That's not really wise - you may get away with it, you may not but its a risky activity.

pphillips

baron777 said:

the bank didnt tell me i had broken any of their T&C's, it was more that it was  large amount being transferred that triggered their suspiciion, i'm sure if i had, they would have told me. i had a similar situation recently where i was paying a builder, by bank transfer, £5000 who had done some work for us, my banks fraud dept at santander called me straight away to ask if it was me making the payment and if i was happy to do it, and ran a lot of checks to make sure i wasnt being scammed, which i appreicated. isn't the reason that we are all on this forum and using the site, to make money work for you, thats all i was doing, and i dont feel bad for doing it and would tell others to do the same if they asked me, as i see it, its much better than people that put all their savings in a current account (earning 0.01%), never switch banks, or energy suppliers, and auto re-new without comparing. i have done nothing wrong

The bank probably didn't tell you that you'd broken the terms and conditions because they had no proof and I don't think you're the type of person to tell them that you were using your child's account for your own benefit. There's clearly no legal reason for your money being in the account. If a service if offered to you and you take up that service, you have to use that service only for its intended purposes (not for an illegitimate purpose), otherwise you have no one but yourself to blame if something goes wrong.

AnotherJoe

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. 

What a load of self serving baloney. You didn't lend your daughter money, you tried to evade numerous rules some of them literally fraudulent (will you now be declaring the interest payments as yours to HMRC?). You've even had the chutzpah to say it wasn't a  loan when that's the title of your post ! 
You also have lied to your daughter so now she thinks it was an evil bank, rather than a bank both protecting her, and cracking down on fraud (tax fraud)