Withdrawing From our child's Isa
tommyfc1980
Posts: 8 Forumite
Hello,
Hoping someone can help or clarify.
So two years ago we set up a Junior Cash Isa with the Bank of Scotland.
We have put money into it every month since with no issues, we hadn't planned on even looking at it till our daughter was 18 so thought nothing more of it.
However and where the question comes is, embarrassingly we have fallen onto a bit of hardship after having started a new life in the other part of the UK to which we have been managing for a bit now but our daughter needs to start nursery in a couple of weeks and we need to raise cash quickly to cover this and costs of other things such as new clothes etc. However it looks like within the T&C's of a this ISA no withdrawals are permitted.
"Can I withdraw money from this account? No withdrawals or closures can be made until the child reaches 18,except in special circumstances which you can see in the junior Cash Isa conditions (PDF).
When the old reaches 18 the account matures to an adult cash isa where the child can continue to save tax free."
Is this allowed? Is my question
Can a bank refuse to allow you to withdraw money you have put in, I understand its my daughters account effectively but with my fianc! being the trustee. We have thought long and hard about this and while we see it as taboo of sorts we sorely need to do this to get back on track.
We have called bank of Scotland to which two of their agents were unable to provide an answer, my fianc! went into a branch today and the cashier had "never in all her time working there had ever heard of anybody withdrawing from an isa" so she have to speak to a manager and come back to us via phone on Monday.
Any help would be greatly appreciated.
Hoping someone can help or clarify.
So two years ago we set up a Junior Cash Isa with the Bank of Scotland.
We have put money into it every month since with no issues, we hadn't planned on even looking at it till our daughter was 18 so thought nothing more of it.
However and where the question comes is, embarrassingly we have fallen onto a bit of hardship after having started a new life in the other part of the UK to which we have been managing for a bit now but our daughter needs to start nursery in a couple of weeks and we need to raise cash quickly to cover this and costs of other things such as new clothes etc. However it looks like within the T&C's of a this ISA no withdrawals are permitted.
"Can I withdraw money from this account? No withdrawals or closures can be made until the child reaches 18,except in special circumstances which you can see in the junior Cash Isa conditions (PDF).
When the old reaches 18 the account matures to an adult cash isa where the child can continue to save tax free."
Is this allowed? Is my question
Can a bank refuse to allow you to withdraw money you have put in, I understand its my daughters account effectively but with my fianc! being the trustee. We have thought long and hard about this and while we see it as taboo of sorts we sorely need to do this to get back on track.
We have called bank of Scotland to which two of their agents were unable to provide an answer, my fianc! went into a branch today and the cashier had "never in all her time working there had ever heard of anybody withdrawing from an isa" so she have to speak to a manager and come back to us via phone on Monday.
Any help would be greatly appreciated.
0
Comments
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No you can't withdraw the money. Its your daughter's money and only she can withdraw it when she is age 18.
There is a 30 day cooling off period but you are way past that now.0 -
Your provider is required to ensure the government rules are followed so no withdrawals until 18 unless the child is terminally ill or dies. They would still allow you to transfer the ISA to a new provider.
https://www.gov.uk/junior-individual-savings-accounts
Alex0 -
https://www.thisismoney.co.uk/money/saving/article-1583863/Best-savings-rates-Junior-Isas-children-s-accounts.htmlThey would still allow you to transfer the ISA to a new provider.
3.6% available from Coventry BS.
https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html
By ISA transfer - you may transfer in junior ISA savings or Child Trust Fund savings held with another provider0 -
As above it's correct - once you put the money in you cannot withdraw it: your daughter can withdraw it, but only when she turns 18. This is not a term imposed by the bank, but a rule imposed by the government which applies to all junior ISAs.
It can be an advantage in some circumstances. If you ever find yourself in need of means tested benefits a junior ISA will not count towards your savings and won't affect your entitlement to them. However if you'd saved the money in an account which you could withdraw from (eg an account in your own name which was simply earmarked for your daughter) then you would be expected to use the money before you became eligible for benefits. A junior would also be untouched in the event of bankruptcy or other debt problems you ran into. So putting the money "beyond reach" for the benefit of your daughter is a bit of a two edged sword.0 -
No withdrawals or closures can be made until the child reaches 18,except in special circumstances which you can see in the junior Cash Isa conditions (PDF).
The T&Cs are quite clear.
Other than a transfer to another junior ISA, no withdrawals are allowed until the child reaches 18 unless the child becomes terminally ill or dies.We have called bank of Scotland to which two of their agents were unable to provide an answer, my fianc! went into a branch today and the cashier had "never in all her time working there had ever heard of anybody withdrawing from an isa" so she have to speak to a manager and come back to us via phone on Monday.
She could simply have referred to the terms and conditions?0 -
If you could steal money from your children's ISA everyone would be stuffing them full of money to get high interest rates in a tax shelter. And I'm sure the government could foresee that which is why you cant.0
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Your feelings you've put very clear here emphasis on the steal part but I can assure you stealing from our daughter is something we would never do!0
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Ok thanking you all for your replies... Something else will just have to happen.0
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tommyfc1980 wrote: »Ok thanking you all for your replies... Something else will just have to happen.
Yup, good luck hope it works out ok.0 -
Look on https://www.turn2us.org.uk and see if you eligible for any grants; a grant I found on here helped me in a time of need years ago.0
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