Trust bank account

Hi. Hope someone can advise. 
I manage a family trust. At the moment we have a dedicated product called trust current & savings accounts with barclays. 
Up untill the interests rates have changed recently it hasnt mattered we have their savings account but the interest rates they give us on the savings account is tiny, and they wont increase it.
As a steward of the money i need to be sure i have explored all possibilities to maximise return on investment.
My question is, do we, are we legally obliged to, have an official trust current and savings account? 
I would think of opening a new bank account/savings account with A N Other bank, not official trust accounts, that give better interest rates. I would also leave appropriate notes in the file to the effect this is trust money, not my personal money, in the event of my death. There is the matter of the money being in my name in the event of a collapse of my own financial position and any creditors claiming the trust money as part of my estate but that would not happen. 
Any thoughts very welcome. 


  • Keep_pedalling
    Keep_pedalling Forumite Posts: 14,841
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    You must keep your finances separate but a quick google shows that there are options available for trusts that do pay a reasonable IR.
  • Zanderman
    Zanderman Forumite Posts: 4,424
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    I've no knowledge of trusts, but any money in a personal bank account is legally-speaking the property of the account holder, no matter what notes you leave in a file.

    You are, in effect, gifting yourself the money which is probably not a sensible way forward. In the event of your death it would be part of your estate as it is in your account - I don't think notes in a file would change that.
  • friolento
    friolento Forumite Posts: 393
    100 Posts Name Dropper Photogenic
    edited 25 August at 2:04PM
    Keeping the savings in trust is the right approach, for reasons mentioned above. It is possible to get Trust accounts with much better rates than Barclays’. For example, you could try Hampshire Trust Bank, but it’s also worth checking the leading interest payers
    PRAISETHESUN Forumite Posts: 3,371
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    Keep it separate for sure. No matter what notes you leave, it's much neater in the long run to have clear separation in the event there is any dispute over the origin/ownership of the money.

    Ultimately while you might have an obligation as the trust manager to ensure that you get a good return on the money, if the choices available to trust accounts are limited then you'd still be doing the best you can even if the rates on offer are poor by comparison to personal accounts. Banks after all are trying to make money, and the low interest rates on offer are likely a reflection of their appetite (or lack thereof) for offering accounts in these instances.
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