Saving for Grandchild over 18

RoRo_4

We had an account with Nationwide for our grandchild, in her name but at our address so that we could keep control of it. Now that she is 18 Nationwide closed the account she was with and want us to transfer it elsewhere. We wanted the account for her at our address as before but nationwide insisted that we go through the old routine of sending proof of address etc which of course we havent got.
Now that she is 18 they insist that it is in her name and she has control, we want to keep control until she is 21.

Its difficult starting a new account because she has very little proof with her address on , obviously no utility bills and even if we had that the account would be opened from her address not ours.

I appreciate many people think we are being mean by not giving her the money now (about 2k) but we would prefer to wait til she is 21.

Because we already have ISAs in our name we can't go that route, any ideas on an account to open with minimal fuss and a decent rate.

Many thanks

martinman3

The Yorkshire Building Society One Day account is unusual in that it allows you to have an account in trust for a child/young adult up to the age of 21 unlike Nationwide as you know.
http://www.ybs.co.uk/savings/childrens/one_day/index.jsp

After the age of 16 if the account is still in trust the interest is taxed and the young adult must claim it back using a R40 form from HMRC
http://www.hmrc.gov.uk/forms/r40.pdf

One more thing, check if your grandchild is subject to the charitable assignment clause if Smart account transferred to new account. If not ensure that the contents of the old account are transferred to a new account first to protect her rights. Then withdraw all contents save £100 to move to new account with another bank/bs. If transferring account to her name means that she is still subject to charitable assignment clause then it does not matter.

Note that access to contents of Smart account is now currently limited to your grandchild so you will need her consent to do anything with the money.

greenface

I know you are "loosing control" of the money you have saved for her.
It would be a advantage to share your knowledge with her and encourage her to open her own ISA with this money with full explaination on how it all works.It may be a better advantage to you both in the long term.