Dual custody account for baby

Pippy2002

Hi there, 

My partner & I have just had our first child and we have some money that’s been gifted by friends and family. 

We would like to open a dual signatory account that requires both parties to sign if a withdrawal is required. 

It’s not that we do not trust each other it just feels like the right thing to do. 

Are there any banks or building societies that offer this kind of account? 

Many thanks 

blue.peter

This might sound facetious - and I apologise if it does - but I suggest asking your favoured bank if they can help. I'd expect them to be able to do so, because it's a very similar situation to handling a power of attorney that requires the attorneys to act jointly. You should, however, expect banks to be a bit of a PITN about some aspects. For example, they might not allow online access (because that would enable one person to act alone). They might also require you both to attend appointments together. That's fine now, but could get nasty if you ever break up.

TheMilkmansDad

Congrats!

Is the gifted money for you and your partner or for the new addition? ie, will the money be held in your names or the babys?

blue.peter

PS to my earlier comment: you might find that the bank strongly encourages you to set the new account up under trust.

Pippy2002

blue.peter said:

This might sound facetious - and I apologise if it does - but I suggest asking your favoured bank if they can help. I'd expect them to be able to do so, because it's a very similar situation to handling a power of attorney that requires the attorneys to act jointly. You should, however, expect banks to be a bit of a PITN about some aspects. For example, they might not allow online access (because that would enable one person to act alone). They might also require you both to attend appointments together. That's fine now, but could get nasty if you ever break up.

Thanks for your message Peter, to add a little more context and/or 'meat to the bone' we have visited all the main high-street banks and none of them offer a dual signatory account for a baby that requires both parents to sign in branch! 
It seems quite odd to me that this is the case considering many parents are no longer together and therefor having the account in one parents name could be contentious or even risky. 

We may indeed look at trust funds as an alternative, but again we would like to be both dual signatory's (if this is possible!!) and again if you reccommend anything I would be most grateful!!

Pippy2002

TheMilkmansDad said:

Congrats!

Is the gifted money for you and your partner or for the new addition? ie, will the money be held in your names or the babys?

Thank you for the message of congratulations - the money that has been gifted is for our child and we would like to put it into her name in an account thats hers but that she cannot touch until she is 18. 

We plan on paying money in year on year - birthdays / christmas etc and it should be a nice pot for when she turns 18.

Thanks again!

eskbanker

If the money is placed within a Junior ISA then nobody can access it until she's 18!

https://www.moneysavingexpert.com/savings/junior-isa/

blue.peter

Pippy2002 said:

We may indeed look at trust funds as an alternative, but again we would like to be both dual signatory's (if this is possible!!) and again if you reccommend anything I would be most grateful!!

It's certainly possible to set up a trust this way. It's not even difficult. However, I'd recommend getting your solicitor involved if you want it done properly. Of course, the question then is whether the amount of money involved is worth the cost. Only you and your partner can decide that.

But I'm not sure that that'd help with your original problem - finding a co-operative bank. I'm both surprised and disappointed to learn of your experience. I agree that this ought to be a pretty ordinary offering. As I said earlier, it's akin to requiring two attorneys to sign when operating the donor's account. And I have good reason to know that they can cope with that - even if they are a pain about some aspects.

sheramber

If it id not intended to withdraw money then a junior ISA is the answer. Anybody can deposit  in it but nothing can be wthdrawn until the child is 18.

Remember, with an ordinary account any interest over £100 from money deposited by parents is taxable on parents.

Having a joint links you financially o the other party which may not be desirable when parents separate.  Any bad debt one has reflects on the other party.

Judytoo

You also need to consider if you really want your daughter to be able to access a decent sum of money on her 18th birthday, as legally it will be hers and she can access it.
Some people will spend it all on a holiday to Ibiza and a load of new clothes, and others will be more careful and save it into a LISA for their first home. 

Sadly you can’t tell at this point which one will happen, but it is often recommended you keep,the money in your name or her other parents name until she is olde enough to spend it wisely 

eskbanker

sheramber said:

Having a joint links you financially o the other party which may not be desirable when parents separate.  Any bad debt one has reflects on the other party.

'Having a joint' would typically mean something entirely different, but assuming you mean having a joint savings account, then these aren't reported to credit agencies and therefore don't create any financial association....