Cheque in baby’s name - which banks will accept

HJones22

I was given a very generous cheque from a family member following the recent birth of my daughter. However they assumed I had changed my surname when I married, which I hadn’t. So I rather sheepishly contacted them and explained, but then said how I had already opened a Kids saver account with Halifax in my daighter’s name, and thought it would be cute if he could make the new cheque out to her name, and then that could be her first deposit…. However Halifax have just told me they cannot accept the cheque in her name, only in mine (as I’m trustee of the account).

So rather than go back to my family member for a second time (which I would do anything to avoid as it was awkward enough the first time) - does anyone know which banks allow a child’s account to accept cheques in their name?

LHW99

Possibly the post office (National savings) may allow this, provided you have sufficient ID details? This link (a couple of years old) suggests it may work

https://www.askaboutmoney.com/threads/child-savings-account.223924/

maman

I don't use my married name and have occasionally had cheques written where the sender assumed I did. I informed my bank and they put a note on my file to accept cheques written to Mrs Married Name. It was a long time ago and I may have shown them my marriage certificate at the time. 

Obviously, because of money laundering, banks are much different now but you could try that. 🤔

IanManc

maman said:

I don't use my married name and have occasionally had cheques written where the sender assumed I did. I informed my bank and they put a note on my file to accept cheques written to Mrs Married Name. It was a long time ago and I may have shown them my marriage certificate at the time. 

Obviously, because of money laundering, banks are much different now but you could try that. 🤔

The cheque is now in the baby's name.

Kim_13

It seems mad to me that they won’t accept - while you are the trustee, it’s her account, her money and the cheque is in her name. 

From a tax perspective, it’s worth persevering - it’s much more likely tax will be due on the interest if the money goes to you and you then gift it onto her. Also if you were to need to claim means tested benefits in the future, you may be considered to have deprived yourself of the capital by giving it to your daughter.

I have no experience of children’s accounts, but in the meantime, it might be worth trying another branch/on another day, as the cashier who dealt with you may have made a mistake.

HJones22

LHW99 said:

Possibly the post office (National savings) may allow this, provided you have sufficient ID details? This link (a couple of years old) suggests it may work

This post appears to be about an post (Irish post office) but think my problem is very similar - so maybe a JISA that picks money away until 18 would accept it in her name 🤷🏻‍♀️

wmb194

HJones22 said:

I was given a very generous cheque from a family member following the recent birth of my daughter. However they assumed I had changed my surname when I married, which I hadn’t. So I rather sheepishly contacted them and explained, but then said how I had already opened a Kids saver account with Halifax in my daighter’s name, and thought it would be cute if he could make the new cheque out to her name, and then that could be her first deposit…. However Halifax have just told me they cannot accept the cheque in her name, only in mine (as I’m trustee of the account).

So rather than go back to my family member for a second time (which I would do anything to avoid as it was awkward enough the first time) - does anyone know which banks allow a child’s account to accept cheques in their name?

Try Barclays. You first might need to open a current account in your own name. In my experience, when setting up a faster payment to a Barclays children's account confirmation of payee will work with both the child's and the trustee's names.

HJones22

Kim_13 said:

It seems mad to me that they won’t accept - while you are the trustee, it’s her account, her money and the cheque is in her name. 

From a tax perspective, it’s worth persevering - it’s much more likely tax will be due on the interest if the money goes to you and you then gift it onto her. Also if you were to need to claim means tested benefits in the future, you may be considered to have deprived yourself of the capital by giving it to your daughter.

I have no experience of children’s accounts, but in the meantime, it might be worth trying another branch/on another day, as the cashier who dealt with you may have made a mistake.

Hi Kim, I know I find it a bit strange, as that’s one of the reasons I thought having the cheque in her name would work. It was the online chat system (with a human) that said they couldn’t accept, so I’ll maybe go into branch and see what is/isn’t possible. 

xylophone

I find this very strange.

I have cousins who have opened accounts for their infant children and I always send Christmas/birthday cheques drawn in the name of the child.

The cheques have aways been cashed......

Beddie

Pay it in using your banking app - it will probably go through fine without any problems at all.

HJones22

Beddie said:

Pay it in using your banking app - it will probably go through fine without any problems at all.

I didn’t even know this was possible!! I’ll try it and let you know if it worked!