CHILDS SAVINGS ACCOUNT

mac505

Our grandson lives in Malta and we would like to open a savings account for him in the UK but every account I have tried requires him to be a UK resident , does anybody know if it can be done or will we have to open a EU account for him ?

Newbie_John

Why not open savings account in your name and keep it just for that purpose?

Or ask their parents to open one there and send them money through Wise (cheap transfers abroad).

All the JISAs, Premium Bonds require them to be a UK resident so people don't avoid tax evasions by opening numerous accounts for "made up" kids.

Emmia

https://forums.moneysavingexpert.com/discussion/comment/81893572#Comment_81893572

The trouble with the own name account, is the money would be part of the OPs estate/assets when the time comes.

The OP would also need to ensure the planned destination of the money in that account (i.e. to the grandson) is specified in their will.

Does your grandson have a Maltese account you could pay into using something like Wise?

poseidon1

The problem with continental Europe in general and Malta in particular, is the dearth of anything approaching the range of savings and investments products available in the UK.

As regards children's savings accounts, bank interest rates are typically below 1% ( eg HSBC Malta Karus account for children). However if the parents in Malta are tech savvy then the following Revolut account for children at up to 2% interest maybe worth a look-

https://www.revolut.com/en-MT/kids-and-teens/kids-savings-account/

As regards investing the outlook is similarly dire, with only the equivalent of with profit endowments easily accessible - see below

https://www.bov.com/mapfre-msv-child-savings-plan

Needless to say neither options can be funded by the OP as UK grandparent, so funding must be via one or other of the parents in Malta.

wmb194

https://forums.moneysavingexpert.com/discussion/6656353/childs-savings-account

I’d just save the money in my own name and gift it to them when you think they’re ready.

born_again

https://forums.moneysavingexpert.com/discussion/comment/81893674#Comment_81893674

Of course this depends on Op not being on any means tested benefits & as well as being liable for any tax on the interest.

wmb194

https://forums.moneysavingexpert.com/discussion/comment/81893734#Comment_81893734

Just save in an Isa. If you have to pay tax on the interest or capital gains then so be it. It still might be better than having to give it to them at 18.

born_again

https://forums.moneysavingexpert.com/discussion/comment/81893788#Comment_81893788

Does not get past means tested benifits.

What if Op is already at the limit?

wmb194

https://forums.moneysavingexpert.com/discussion/comment/81893792#Comment_81893792

If they're so broke they should spend the money on themselves.

luci

I would also suggest that you save it in an ISA in your own name. It might be prudent to have it in your will that it should go to your grandson on your death.

Yorkie1

https://forums.moneysavingexpert.com/discussion/comment/81893799#Comment_81893799

There are risks around putting something like this in a will, unless it is absolutely certain that for the duration of the will (i.e. until updated or the testator passes away), the account will not be moved to a different account e.g. with a better rate of interest.

If the will says "I give the funds in my ISA sort code 01-23-45 account 01234567 to my grandson George [or to be split between such of my grandchildren as survive me, to avoid it going only to George if there is then another grandchild]", then if that account no longer exists, the gift will fail if the funds have been transferred to ISA sort code 67-89-01 account 76543210. Those funds will just form part of the rest of the estate.