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Original poster

Told I can’t use this premium bonds money for our house deposit as it’s illegal?

603 replies

kiav · 27/09/2024 11:19

We have two premium bonds accounts. One is in my name and one is in DD’s name. We have 50k in mine and 30k in DD’s.

we are now in a position to buy a home. We will need the 50k for a deposit and we also need the 30k for things like stamp duty, new sofa, to do a small bit of work that needs doing in the downstairs etc.

I have been told by a friend it’s illegal to use Dd’s 30k for this? This is money we have saved from our income but now our circumstances have changed we need it. Surely premium bonds should tell you this before you invest??

OP posts:
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7
Cobblersorchard · 27/09/2024 20:59

TeenToTwenties · 27/09/2024 11:31

You should never put money in to your child's name you might want to access. You can always have an account and mentally designate it for the child without effectively giving them the money.

It may well be possible to cash in the bonds and access the money but the OP would do well not to save in her child's name in future.

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Actually it’s not always the best advice. I have put money in an account in DD’s name so it is not marital money and cannot be included in a divorce.

I had money in my own name at 18 (in the region of £50k some decades ago) as my dad wanted it to go to me. I managed it entirely properly and bought a house at 22.

SoNiceToComeHomeTo · 27/09/2024 20:56

Cantbelieveit888 · 27/09/2024 19:25

It was her (the parent) money to begin with

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To begin with yes but not after it was given to the child. Would you expect to reclaim a gift you freely gave to a friend?

llamali · 27/09/2024 20:56

I'm now thinking if parents are just using it as an extra tax free savings account and using the money to buy houses etc they should just do away with them

Mamabobogo · 27/09/2024 20:53

confusedlots · 27/09/2024 20:37

@kiav this is one of the reasons I save money for my kids in premium bonds in their names instead of an account which only they can access - because I have the option to take it out when I want should I need to. I don't plan to, and having it in their names means I'm not tempted to, but we did have a cash flow situation a while ago while we were doing major renovations and I took out a chunk of their premium bonds savings for that. I paid it back in a few months later, but there is absolutely nothing stopping you withdrawing the money if you're the one who set up the account.

So reasonable!! And no HMRC or solicitors and no arrests?

if only people knew!

Mamabobogo · 27/09/2024 20:52

llamali · 27/09/2024 20:18

If you die the money in the PB account is still your child's. A sofa wouldn't be

I’ve got to say this to you… in the same way you speak to others!

THE ROOF OVER THE CHILDS HEAD WOULD VE THOUGH!!!

GET IT???

confusedlots · 27/09/2024 20:37

@kiav this is one of the reasons I save money for my kids in premium bonds in their names instead of an account which only they can access - because I have the option to take it out when I want should I need to. I don't plan to, and having it in their names means I'm not tempted to, but we did have a cash flow situation a while ago while we were doing major renovations and I took out a chunk of their premium bonds savings for that. I paid it back in a few months later, but there is absolutely nothing stopping you withdrawing the money if you're the one who set up the account.

japaneseinspired · 27/09/2024 20:36

Guardians are whoever are appointed guardians in the will

japaneseinspired · 27/09/2024 20:32

To pay for the SDLT etc to buy a house. Or to pay towards the deposit.

Cantbelieveit888 · 27/09/2024 20:30

llamali · 27/09/2024 20:28

For a sofa ??

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i don’t know if you are being serious or funny.

but I’m howling

llamali · 27/09/2024 20:28

japaneseinspired · 27/09/2024 20:26

Another scenario: parents die and guardians have responsibility for the children. Can they take out the funds and use them like this?

For a sofa ??

oustedbymymate · 27/09/2024 20:28

@ZarZarGabor has it right

llamali · 27/09/2024 20:27

oustedbymymate · 27/09/2024 20:27

Nope. If the account is in a child's name you can't access it until they are 18

YES YOU CAN

oustedbymymate · 27/09/2024 20:27

Nope. If the account is in a child's name you can't access it until they are 18

Cantbelieveit888 · 27/09/2024 20:27

japaneseinspired · 27/09/2024 20:26

Another scenario: parents die and guardians have responsibility for the children. Can they take out the funds and use them like this?

Who are the guardians in this scenario?

japaneseinspired · 27/09/2024 20:26

Another scenario: parents die and guardians have responsibility for the children. Can they take out the funds and use them like this?

Cantbelieveit888 · 27/09/2024 20:21

Jesus my solicitors clearly know the law too 🤓

Cantbelieveit888 · 27/09/2024 20:19

llamali · 27/09/2024 20:16

I haven't missed the point they go into the parents account. I know they do as I have some. I cashed some out to pay for my child to go to the aquarium and the zoo

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Exactly this you are using the cash as you see fit and I can tell you I do not have a problem with you doing that in the slightest….

That’s what the OP is doing for her family she and her daughter get to enjoy it

llamali · 27/09/2024 20:18

If you die the money in the PB account is still your child's. A sofa wouldn't be

Negroany · 27/09/2024 20:18

Cantbelieveit888 · 27/09/2024 20:14

What I’m trying to explain is that from the solicitors perspective it’s a non issue… I have been through this already and it was a non issue!

That one anecdote. I have one about money from ex being questioned. And I know the law.

Rosscameasdoody · 27/09/2024 20:16

Arran2024 · 27/09/2024 19:46

If the parents lost their jobs and spent their own savings and had to go onto UC, would the DWP consider the £30k to be part of the parents' assets and therefore refuse to grant UC? I suspect they would - in which case the parents would surely have to take the money out. So then surely the parents can take it out any time?

Nope. DWP would consider that money as belonging to the child, so wouldn’t count towards asset threshold for UC.

llamali · 27/09/2024 20:16

Mamabobogo · 27/09/2024 20:10

But you

Have missed the point that it goes into the parents account.

look at that all said without the need for caps, which makes you look like the five year old in the scenario!

I won’t engage with someone so ridiculous that they use caps lock in that manner.

embarrassing for you!

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I haven't missed the point they go into the parents account. I know they do as I have some. I cashed some out to pay for my child to go to the aquarium and the zoo

Mamabobogo · 27/09/2024 20:15

Negroany · 27/09/2024 20:13

No-one has suggested that's not the case, only that the solicitor may question, and may say it can't be used. If it's part of the house purchase.

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Rubbish!!

Cantbelieveit888 · 27/09/2024 20:14

What I’m trying to explain is that from the solicitors perspective it’s a non issue… I have been through this already and it was a non issue!

Negroany · 27/09/2024 20:13

Cantbelieveit888 · 27/09/2024 19:59

Look we all know she will do it and it will be fine :)

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No-one has suggested that's not the case, only that the solicitor may question, and may say it can't be used. If it's part of the house purchase.

UnimpressiveUsername · 27/09/2024 20:10

I have read so much utter nonsense on this thread 🙄

OP, I’m sorry your circumstances have changed such that your saving plans made in good faith need adjusting. I hope you both enjoy your lovely home (in a great school catchment area with nice neighbours and wonderful happy memories of growing up there etc. Oh look at the potential ways a move could benefit your child!).

All these people chuntering on that the money belongs to the child would no doubt use their child’s money should it be accessible to them if it meant the difference between putting food in mouths and roofs over heads, and they’d be lying if they said otherwise because it’s bloody obvious how doing that is in the child’s best interests. I cannot believe the crap people have been coming out with 🤦🏻‍♀️

What’s also clear is that anyone who sets up a savings pot for their kids looks at the options available to them, and one of those considerations is can I take the money back out if I need it. With PB’s, you sacrifice an interest payment for the chance to win big or get nothing, but you can also take your money back. Behold the rules. The point is, most parents want to provide for their children in the best way they are able. For some, it means giving them some money you’ve saved to them at a future date and for others it means giving them a “comfortable” childhood today as your means allow. It is fine to try to do the former and then later decide to do the later. If you pick the right savings pot option for you, the Rules allow you to do it. Hence PBs over junior ISA seems to have been a great shout by the OP and good for them.