New account but with limited access

teddybear1234

I’ve had notification that a saving plan has now matured for my daughter (19 years old). The money has to be transferred into an account in her name, which is fine, but I’d like to have approval on any spend/withdrawal. The initial saving plan was for if she went to uni or to help as a house deposit, and I don’t want it to be frittered away, so need to be a signature on it. Does anyone know if there’s such an account out there? Or would it be a joint account that I need, with the need for both signatures to approve spend? Any help would be greatly appreciated! 

Brie

Is there any reason (other than frittering) that your daughter needs to have you on her account in any way? 

Presumably she is now an adult and therefore has to have an adult's account.  Obviously if you have power of attorney or some sort of guardianship then the bank should take notice of that.  If she doesn't want your name on her money then I expect she has the right to make that decision.  Hopefully you have given her enough financial education so she understands why this money is there for her and she will be prudent about using it.

teddybear1234

Thanks for the reply Brie. She’s very savvy so it’s not such a worry for her, I’ve got the same situation with her older brother (21) who isn’t quite as good with money shall we say, so it’s more a concern for him! I’m guessing I could just leave the money where it is? But that doesn’t feel right? 

Keep_pedalling

You have no choice the money is now hers and hers alone. 

Woodstok2000

teddybear1234 said:

Thanks for the reply Brie. She’s very savvy so it’s not such a worry for her, I’ve got the same situation with her older brother (21) who isn’t quite as good with money shall we say, so it’s more a concern for him! I’m guessing I could just leave the money where it is? But that doesn’t feel right? 

The money is theirs, so you can't legally deprive them of it without a very good reason as noted above.

We stopped paying into our daughter's isa a while ago as it had reached a level were we didn't want any further money going to her in a lump sum, so now weve got other savings accounts in our names where we can trickle the money to her as needed

Savvy_Sue

If she's sensible, I'd encourage her to work out whether she needs extra money now / short term, and stash what she doesn't need into a higher interest fixed term savings account with no interim withdrawals. But it's her money, and having a joint account with you affects both of you.

OR, look at Martin's recent-ish programme on investing. Unless she's got short term plans for Uni or house-buying, that's likely to give better returns.