savings

nodrogthegood

my family want to put about £4500 away for my niece without the parents knowledge. it would be paid to her at age 18 ( in12 years), what is the best and safest way to do this, any advice very gratefully received, thankyou

Albermarle

You can not open an account in her name, her parents have to do that.

So all you need to do is one of your family open a savings account in their own name, and put the £4,500 in that.
Then when she is 18 ( or later if you want) just give her the money.

If the person opening the account has other savings in their name they may end up paying tax on some of the interest. In which case it would probably be better to open a Cash ISA, instead of a standard savings account.
Savings | MoneySavingExpert

wmb194

Albermarle said:

You can not open an account in her name, her parents have to do that.

So all you need to do is one of your family open a savings account in their own name, and put the £4,500 in that.
Then when she is 18 ( or later if you want) just give her the money.

If the person opening the account has other savings in their name they may end up paying tax on some of the interest. In which case it would probably be better to open a Cash ISA, instead of a standard savings account.
Savings | MoneySavingExpert

You can but you need the child’s birth certificate and some banks want the parents’ consent. There’s also a good chance that at some point the bank will send a letter to the child’s address e.g., Lloyds at 16 to tell the child it holds data on them and it could be discovered that way.

 I’d follow your suggestion though for the OP to save in their own name(s) and gift the money later.

jimjames

For 12 years you might want to look at investments rather than savings as it should give a better return

Albermarle

wmb194 said:

Albermarle said:

You can not open an account in her name, her parents have to do that.

So all you need to do is one of your family open a savings account in their own name, and put the £4,500 in that.
Then when she is 18 ( or later if you want) just give her the money.

If the person opening the account has other savings in their name they may end up paying tax on some of the interest. In which case it would probably be better to open a Cash ISA, instead of a standard savings account.
Savings | MoneySavingExpert

You can but you need the child’s birth certificate and some banks want the parents’ consent. There’s also a good chance that at some point the bank will send a letter to the child’s address e.g., Lloyds at 16 to tell the child it holds data on them and it could be discovered that way.

 I’d follow your suggestion though for the OP to save in their own name(s) and gift the money later.

Thanks for the correction. I think I was thinking of JISAs, which do have to be opened by a parent I think.