How much interest do I owe my son? His savings used to offset mortgage

Metrocammell

I don't particularly know or have an opinion of the answer to the OP, but I'm intrigued to see the responses of others having been on the receiving end of something relatively similar.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81875991#Comment_81875991

I agree. Particularly from a child to young to understand/ consent.

eskbanker

Much will depend on the source of the money - if it was all OP's and just loosely earmarked for future gifting to the son then there's nothing wrong with that, but if it was money from others (e.g. relatives, etc) that had already been gifted then that would be a different story. However, what's done is done, and even if there was anything 'wrong' with that, OP is clearly now looking to put it 'right', so it's more of a maths question than an ethics one….

Bobblehat

https://forums.moneysavingexpert.com/discussion/comment/81876099#Comment_81876099

You beat me to it by less than a minute! OP has not stated what the source of the money was.

FIREDreamer

https://forums.moneysavingexpert.com/discussion/comment/81875991#Comment_81875991

The child is being compensated fairly now, so no problem?

Whelky

https://forums.moneysavingexpert.com/discussion/comment/81875991#Comment_81875991

we didn’t take any interest it’s just as you will generally pay more in interest than you receive on your savings it seemed to make sense to give the interest to my son than the mortgage company. Also don’t feel too bad for him: I often deposited birthday money to this dedicated account, then he’d spend it as well, without me removing it from that account so he got it double!

Whelky

https://forums.moneysavingexpert.com/discussion/comment/81876103#Comment_81876103

Oh, the judgement! £5k was from a grandparent for “the future” ie when an adult. There’s premium bond wins that the son wanted to save (there’s plenty he spent) and birthday money. He could spend what he wanted except the £5k. What he forgot about stayed in the account. It just seemed silly to pay unnecessary mortgage interest on the one hand whilst only receiving tiny savings interest on the other. The intention was always that he benefit from the interest we saved. If it had been put in his own account from the start it would have gone on beer by now so he’ll have a nice little travelling fund when he finishes uni. Which we are supporting him in at a cost of £600 per month, rather than asking him to use any savings or work. So I think he’s doing alright.

Whelky

It’s a separate account that offsets the mortgage: the disadvantage to him being it wouldn’t earn interest… which is why I want to “add” interest to make it fair. You only need to feel uneasy if you think I’m not giving it back! And he has “spent” some that I paid into his savings anyway, without me debiting his account.

Whelky

https://forums.moneysavingexpert.com/discussion/comment/81875445#Comment_81875445

I’m scared to show him!!

Bobblehat

https://forums.moneysavingexpert.com/discussion/comment/81876267#Comment_81876267

Forgive my clumsy phrasing! I was not being in the slightest bit judgemental, trying to be just the opposite in fact.

I would not dare to comment on what was "right" or "wrong" but was agreeing with @eskbanker in the assessment that the solution might depend on the source of the money!