We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Need a current account and savings account that can't spend much in a day

Options
My nephew, 17, wants a current account that has a spending limit of something like £200 per day. This includes bank transfer, cash withdrawal, card payments, etc. A day or more notification for a limit is fine.

If this is not possible for a current account then one work around would be a savings account with a strict daily limit, or a day or two notice before being allowed to withdraw the money. When I looked a lot of the notice account allowed access, they just stopped paying interest. This wouldn't work for his needs.

Does anyone have any suggestions?

Cheers!
«1

Comments

  • Grumpy_chap
    Grumpy_chap Posts: 18,249 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Falesh said:
    My nephew, 17, wants a current account that has a spending limit of something like £200 per day. This includes bank transfer, cash withdrawal, card payments, etc. A day or more notification for a limit is fine.

    If this is not possible for a current account then one work around would be a savings account with a strict daily limit, or a day or two notice before being allowed to withdraw the money. When I looked a lot of the notice account allowed access, they just stopped paying interest. This wouldn't work for his needs.

    Does anyone have any suggestions?

    Cheers!
    It is hard to see what is actually trying to be achieved here, in so far as bank accounts themselves don't actually spend money.  It is only the account users that do that.

    Many accounts have limits on cash withdrawals etc. 
    To have limits on total spend would likely be very difficult for a bank to make work in practice:
    • A cheque can be written but not seen in the account for a few days.  How does the bank know what else will already have been drawn when the cheque lands?
    • Card payments are not always seen in the account for a short period while they are "pending" as the system processes the transactions.  It would be easy to buy a £100 pair shoes and then pop down the road for a new outfit (shirt, chinos, jacket and accessories) in M&S that can easily total over £100, so what does the bank do?  Your nephew has the clothes for an evening out, but one of the shops can't have the money?
    • Direct Debit can draw form the account and overlap other transactions
    If the aim is to counter a lack of self-discipline, some financial education may need to be the solution in the long term.  Sadly, that may be through the realities of a negative overdraft experience (though that is not the best way).  

    If this is to prevent him from overspending in total, then £200 daily is £6k per month - way more than most 17-year olds have available.  Such a limit would not prevent some scary financial outcomes.

    Being a 17-yo lad, would such an account work, or would it be setting a challenge to bust the limits as often as possible?

    Depending on what is actually the goal here, a Basic Bank Account may be an option but I am not sure that any offer the limits in the way suggested.

    From a bank's perspective, I'd be wary of providing an account to someone with the request as it does rather give the impression of someone who will spend beyond their means and leave the bank with bad-debts.
  • born_again
    born_again Posts: 20,377 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    Is there a particular need for this such as they are vulnerable?
    Life in the slow lane
  • Daliah
    Daliah Posts: 3,792 Forumite
    1,000 Posts First Anniversary Photogenic Name Dropper
    £200 max a day? For a 17 year old? 

    I suppose school holidays did start early.
  • grumbler
    grumbler Posts: 58,629 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Rich people - they all have their quirks...

    Do banks still do basic accounts with cash cards? Barclays say "A basic bank account includes a Visa debit card or cash card", but even if a cash card is really available, the withdrawal limit is £300, not £200.

  • Jami74
    Jami74 Posts: 1,287 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Falesh said:
    My nephew, 17, wants a current account that has a spending limit of something like £200 per day.

    Why does he want his spending limited? What happens if he wants/needs to make a bigger purchase such as buying a car/car insurance/train season ticket/new computer?


    When I looked a lot of the notice account allowed access, they just stopped paying interest. This wouldn't work for his needs.

    Has he got lots of money to earn interest on? If he had a relative he trusted could they hold some of his money in a separate account of their own and transfer small amounts weekly, maybe by standing order, or as he needed it? And the bulk of his money could be put in an interest bearing notice account.
    Debt Free: 01/01/2020
    Mortgage: 11/09/2024
  • Falesh
    Falesh Posts: 10 Forumite
    Second Anniversary First Post
    He has a mental health issue that very rarely means he loses control of his actions. Once he emptied his account when in that state and the money was lost. Because of that he would like a limit on how much can be taken out as a form of protection. This is unlikly to happen again, but if it does £200 would be all that is lost, which is a sum that hurts a lot, but doesn't set him back to square one. He would like a spending limit high enough that he can still do things like christmas shopping without getting capped out too easily.

    "Rich people - they all have their quirks..." He, nor I, are anywhere near rich. His usual weekly spend is extremely low. He's trying to save up for driving lessons and then a second hand starter car.

  • molerat
    molerat Posts: 34,562 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I think the only viable fool proof option is for someone else to manage his money via a pre paid debit card keeping it topped up to £200.
  • But doesn’t really solve the issue that ~£6,000 a month could still be spent? (Obviously depending on what/why the £200 daily limit is based from) 
  • molerat
    molerat Posts: 34,562 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    But doesn’t really solve the issue that ~£6,000 a month could still be spent? (Obviously depending on what/why the £200 daily limit is based from) 
    But that is not the problem, the limit is to stop a splurge in excess of £200 on any one day.

  • Sea_Shell
    Sea_Shell Posts: 10,021 Forumite
    Tenth Anniversary 1,000 Posts Photogenic Name Dropper
    What's the long term plan here as he becomes an adult?

    Are there any other long term "safeguarding" measures in place?

    I don't know what legal measures (Power of attorney?) need to be in place if he can't be trusted (or be able) to manage his own financial affairs, both now and in the future.
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.60% of current retirement "pot" (as at end May 2025)
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.