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  • FIRST POST
    • tommyfc1980
    • By tommyfc1980 13th Oct 18, 4:31 PM
    • 8Posts
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    tommyfc1980
    Withdrawing From our child's Isa
    • #1
    • 13th Oct 18, 4:31 PM
    Withdrawing From our child's Isa 13th Oct 18 at 4:31 PM
    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.
Page 1
    • Tom99
    • By Tom99 13th Oct 18, 4:53 PM
    • 3,105 Posts
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    Tom99
    • #2
    • 13th Oct 18, 4:53 PM
    • #2
    • 13th Oct 18, 4:53 PM
    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.
    • Alexland
    • By Alexland 13th Oct 18, 5:14 PM
    • 3,838 Posts
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    Alexland
    • #3
    • 13th Oct 18, 5:14 PM
    • #3
    • 13th Oct 18, 5:14 PM
    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

    Alex
    • xylophone
    • By xylophone 13th Oct 18, 6:54 PM
    • 27,674 Posts
    • 16,626 Thanks
    xylophone
    • #4
    • 13th Oct 18, 6:54 PM
    • #4
    • 13th Oct 18, 6:54 PM
    They would still allow you to transfer the ISA to a new provider.
    https://www.thisismoney.co.uk/money/saving/article-1583863/Best-savings-rates-Junior-Isas-children-s-accounts.html

    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 provider
    • Aretnap
    • By Aretnap 13th Oct 18, 8:28 PM
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    Aretnap
    • #5
    • 13th Oct 18, 8:28 PM
    • #5
    • 13th Oct 18, 8:28 PM
    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.
    • xylophone
    • By xylophone 13th Oct 18, 9:22 PM
    • 27,674 Posts
    • 16,626 Thanks
    xylophone
    • #6
    • 13th Oct 18, 9:22 PM
    • #6
    • 13th Oct 18, 9:22 PM
    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?
    • AnotherJoe
    • By AnotherJoe 13th Oct 18, 10:56 PM
    • 11,850 Posts
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    AnotherJoe
    • #7
    • 13th Oct 18, 10:56 PM
    • #7
    • 13th Oct 18, 10:56 PM
    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.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • tommyfc1980
    • By tommyfc1980 14th Oct 18, 11:03 AM
    • 8 Posts
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    tommyfc1980
    • #8
    • 14th Oct 18, 11:03 AM
    • #8
    • 14th Oct 18, 11:03 AM
    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!
    • tommyfc1980
    • By tommyfc1980 14th Oct 18, 11:04 AM
    • 8 Posts
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    tommyfc1980
    • #9
    • 14th Oct 18, 11:04 AM
    • #9
    • 14th Oct 18, 11:04 AM
    Ok thanking you all for your replies... Something else will just have to happen.
    • Alexland
    • By Alexland 14th Oct 18, 11:05 AM
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    Alexland
    Ok thanking you all for your replies... Something else will just have to happen.
    Originally posted by tommyfc1980

    Yup, good luck hope it works out ok.
    • louloubelle79
    • By louloubelle79 14th Oct 18, 11:24 AM
    • 374 Posts
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    louloubelle79
    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.
    • tommyfc1980
    • By tommyfc1980 14th Oct 18, 11:46 AM
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    tommyfc1980
    Wow thank you so much. Will look into this now
    • AnotherJoe
    • By AnotherJoe 14th Oct 18, 12:42 PM
    • 11,850 Posts
    • 13,816 Thanks
    AnotherJoe
    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!
    Originally posted by tommyfc1980
    I'm sure your intention would be to give it back, so you can kid yourself it would be just a loan, but you certainly wouldn't have been the first to start with that intention and not fulfill it, after all you must be in dire straights if you cant even put this spending on credit card for a month or three.
    It's not uncommon to have posts here with takes of relatives taking money out of children's building society savings accounts and there's no real way of them getting recompense. And how many times does it happen and the child's not even aware, as an adult,that it occurred.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • tommyfc1980
    • By tommyfc1980 14th Oct 18, 3:54 PM
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    tommyfc1980
    Anotherjoe,

    Oddly enough your comment from earlier was the one that hit home the most between myself and my fianc!. We don't have credit cards or anything like that. But as painful and brutal as it was to read, I think I had to read it to get some perspective on what we were going to do, we are not going to pursue this thought anymore.

    We are continuing to pay in monthly and we'll just find some other way.
    Last edited by tommyfc1980; 14-10-2018 at 3:57 PM.
    • jimjames
    • By jimjames 14th Oct 18, 4:13 PM
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    jimjames
    We are continuing to pay in monthly and we'll just find some other way.
    Originally posted by tommyfc1980
    I really can't understand the logic of doing this. If things are so tight that you were aiming to remove money from this ISA, why would you continue to put more in. Instead it's money that you could use for the required purpose and to build yourself a suitable emergency fund that IS your money and can help avoid such situations in the future.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • tommyfc1980
    • By tommyfc1980 14th Oct 18, 4:23 PM
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    tommyfc1980
    Is child benefit money that we've never used. Having it transferred monthly to our account would put that in our grasp and we'd end up incorporating it in, the situation we are in although dire is temporary.

    Thanks
    • Lungboy
    • By Lungboy 14th Oct 18, 4:31 PM
    • 1,608 Posts
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    Lungboy
    I don't see a problem spending child benefit on these costs as they benefit the child.
    • jimjames
    • By jimjames 14th Oct 18, 4:41 PM
    • 12,870 Posts
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    jimjames
    Is child benefit money that we've never used. Having it transferred monthly to our account would put that in our grasp and we'd end up incorporating it in, the situation we are in although dire is temporary.

    Thanks
    Originally posted by tommyfc1980
    In which case I'd use the money now and then ensure you replace it once the temporary situation is resolved. Requiring short term loans because you're putting too much into your child's ISA seems a little back to front.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Alexland
    • By Alexland 14th Oct 18, 4:44 PM
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    Alexland
    I agree you shouldn't be saving child benefit into a Junior ISA if your general living situation is insecure. The money is provided by the government to help with day to day costs of raising a child which you are undoubtedly incurring. Only lock money away after you have secured your basic living situation.

    Alex
    • tommyfc1980
    • By tommyfc1980 14th Oct 18, 5:10 PM
    • 8 Posts
    • 6 Thanks
    tommyfc1980
    We're not doing loans or anything like that guys, thanks for all your views and opinions even though it has all digressed from the original question/subject. We have a resolution in place ��
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