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    • TTUS
    • By TTUS 3rd Mar 18, 6:08 PM
    • 6Posts
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    TTUS
    Child savings account for non resident infant
    • #1
    • 3rd Mar 18, 6:08 PM
    Child savings account for non resident infant 3rd Mar 18 at 6:08 PM
    Has anyone found a UK bank that offers child savings account for non resident infant. I am from UK, now live in US. My baby was born in US to American father but we are applying for UK passport with British embassy. So he will have UK citizenship. He was given British pounds by family as a gift (I dont want to convert money to US dollars) and his Nan who lives in UK wants to give him monthly pocket money into a UK bank account. I see advice for best savings accounts for children on this website. But my question is specifically which bank offers a child savings account for non resident UK citizens. Thank you.
Page 1
    • AnotherJoe
    • By AnotherJoe 3rd Mar 18, 6:14 PM
    • 9,380 Posts
    • 10,356 Thanks
    AnotherJoe
    • #2
    • 3rd Mar 18, 6:14 PM
    • #2
    • 3rd Mar 18, 6:14 PM
    What is the purpose of this savings account ?
    Is it to build a lump sum that they child gets age 18?
    To build a lump sum that the child gets when you deem ready which might be 16, 18, 26, whatever.
    For the child to dip into as and when ?

    What sort of sums are you looking at ?
    And is this for Nan or you to save into ?
    • TTUS
    • By TTUS 3rd Mar 18, 6:30 PM
    • 6 Posts
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    TTUS
    • #3
    • 3rd Mar 18, 6:30 PM
    • #3
    • 3rd Mar 18, 6:30 PM
    @anotherjoe

    Wanted to explore what is available for these 2 options for my baby boy:

    1) Long term to get a lump sum when he is 18.
    2) For him to dip into when we come back to UK for holiday.

    Wanted either me or Nan can deposit money for him on his behalf. But am flexible so am happy to give Nan the full authority to run the account on his behalf as she lives in UK and I live in US. I have UK bank accounts still so I wanted to do online transfers into his account if possible.

    Thank you
    Last edited by TTUS; 03-03-2018 at 6:32 PM. Reason: Smiley face didn!!!8217;t post it generated random string of text instead
    • AnotherJoe
    • By AnotherJoe 4th Mar 18, 9:09 AM
    • 9,380 Posts
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    AnotherJoe
    • #4
    • 4th Mar 18, 9:09 AM
    • #4
    • 4th Mar 18, 9:09 AM
    Have you considered investments rather than savings .,over 18 years or so investments will almost certainly pay back several times what savings will. Realistically how much will he need for holiday spending?
    The other question is where you are likely to be living for the next 18 years. Savings or investments held in pounds when he will likely want the lump sum in dollars (if this is a long term move) could easily wipe out and more any investment / savings gains.
    It might be that half and half is better. You invest long term in US, nana saves in UK.
    • TTUS
    • By TTUS 4th Mar 18, 10:58 AM
    • 6 Posts
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    TTUS
    • #5
    • 4th Mar 18, 10:58 AM
    • #5
    • 4th Mar 18, 10:58 AM
    Thank you for your thoughts
    • heathrow
    • By heathrow 4th Mar 18, 5:13 PM
    • 60 Posts
    • 32 Thanks
    heathrow
    • #6
    • 4th Mar 18, 5:13 PM
    • #6
    • 4th Mar 18, 5:13 PM
    Irrespective of what passport you apply for, the child will be a US Citizen.


    Be aware that they will be caught by FATCA.
    • Green hopeful
    • By Green hopeful 4th Mar 18, 7:08 PM
    • 65 Posts
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    Green hopeful
    • #7
    • 4th Mar 18, 7:08 PM
    • #7
    • 4th Mar 18, 7:08 PM
    I have bought my non resident grandson premium bonds. There are some hoops to get through to set it up but it worked ok. He has a uk passport. The premium bonds guidance says that you have to check that the country where the child is resident is ok with gambling. The parents control the bonds but grandparents can buy them. I couldn!!!8217;t find anything else that I could invest in for non resident children.
    • TTUS
    • By TTUS 5th Mar 18, 12:16 PM
    • 6 Posts
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    TTUS
    • #8
    • 5th Mar 18, 12:16 PM
    • #8
    • 5th Mar 18, 12:16 PM
    @heathrow

    I had to look up what you mentioned.

    !!!8220;FATCA requires certain U.S. taxpayers who hold foreign financial assets with an aggregate value of more than the reporting threshold (at least $50,000) to report information about those assets on Form 8938, which must be attached to the taxpayer's annual income tax return.!!!8221;

    I report all of my uk bank accounts every year to the US government, so I!!!8217;d be expecting to tell my US accountant for his advice as to how if when to report. I was hoping to find something so his Nan can help him save a little each month. It!!!8217;s not going to be anywhere near $50,000, that would be a nice thought though if it was
    • TTUS
    • By TTUS 5th Mar 18, 12:20 PM
    • 6 Posts
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    TTUS
    • #9
    • 5th Mar 18, 12:20 PM
    • #9
    • 5th Mar 18, 12:20 PM
    @greenhope

    Thank you premium bonds sounds like a possibility. I!!!8217;ll have my Mum check them out.
    • Flobberchops
    • By Flobberchops 5th Mar 18, 1:43 PM
    • 723 Posts
    • 523 Thanks
    Flobberchops
    You should be able to open a child savings account in trust for a non-resident minor as long as the controlling adult is a UK resident. Whether that's the smartest move is another question (as pointed out above) but it is possible.
    I work for a UK bank, but any comments made on this forum are solely my personal opinion. Caveat Emptor!
    • TTUS
    • By TTUS 5th Mar 18, 3:20 PM
    • 6 Posts
    • 0 Thanks
    TTUS
    @flobercho thanks
    • EdSwippet
    • By EdSwippet 5th Mar 18, 9:41 PM
    • 705 Posts
    • 660 Thanks
    EdSwippet
    Thank you premium bonds sounds like a possibility.
    Originally posted by TTUS
    From NS&I's page on accounts for non-UK residents:
    If you live outside the UK, you should check whether local regulations permit you to hold Premium Bonds. For example, the US has strict gaming and lottery laws which mean that it may not be possible or practical to hold Premium Bonds while in the US.
    If you do decide that premium bonds are the best 'savings' vehicle here -- and I'm not saying that they are -- the best bet is to have your UK based non-US citizen Nan hold them in her name, and then just cash in and send the balance when you want to declare this savings account 'matured'. This assumes, of course, that Nan does not already hold premium bonds to her 50k maximum.

    That way the winnings (if any) are not taxable, because the UK does not tax premium bond winnings, and there is nothing to declare on anyone's UK tax return. Conversely, even if you can get round the US-despises-gambling issue, if the premium bonds and the account were instead held by your US resident son then any winnings would be taxable to the US. Accompanied by a heap of annual US tax reporting paperwork misery, because the US also despises anything financial that is foreign.

    Finally, worth noting that many UK banks and financial providers will not open accounts for any US residents, or for any US citizens living in the UK (even if also UK citizens). The reason is, again, FATCA. In effect since 2014, it requires UK banks to grass up any US persons to the IRS, at the bank's own expense. The costs of doing this usually outweigh any benefit to the bank of offering the account.
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