Savings Accounts for Children

ross007

Hi

How many accounts can I open for my daughter. As both grannies went to open an account along with us, is it just the parents or anyone along as they have a copy of birth cert?

Would they all be tax free?

Thanks

ReportInvestor

A grannie could open an account with your daughter's birth-certificate, her ID and recent bill to prove her address.

The proof of address requirements vary between different banks & building societies so it is always best to check what they want on the internet or by phone in order to avoid a wasted journey. Alternatively take extra proof of ID/address.

But you might want to have yourself as trustee to operate the account, not granny. In which case you can do that yourself, but take along granny's cheque. If you do that, then keep a record of the cheque date & number so that you can prove to the Inland Revenue that the money in the account was a gift from a grandparent, not a parent.

Ask to fill out a R85 form to make sure that the interest is tax free.

You can open as many accounts for your daughter as you want - but there may be some restrictions if they are all at the same bank or bs.