Aibu to think it may not be possible for other people pay into your savings account?

[busymyfoot]

I'm trying to help my 19yo son find a savings account that his grandparents can intermittently gift money to. I know it is possible with LISA/JISA accounts, but those are not appropriate in this case. They could also pay into his current account, enabling him to transfer it where he wants, but they would prefer not to if possible.

Unfortunately, all of the savings accounts I have looked at so far will only allow deposits from a linked current account in the same name. Presumably this is an anti-money laundering measure.

If you have a savings account that allows other people to directly pay into it, please can you tell me which provider and account it is?

As long as you have acc number & sort code anyone can pay into a ordinary acc, & the recipient would need to transfer

You could try Smile. I have a savings account with them and it has its own sort code and account number. I do have a current account with them, but I am pretty sure you can transfer directly to it. Worth a look anyway.

Also Nationwide.

Can he open a savings account or second current account with his existing bank, give those details to his family and then transfer it to whatever savings account he actually wants to use?

Any particular reason why the family are being difficult about not just transferring it into his current account? At 19 he’d have full access to savings anyway, so I can’t understand why they have an issue with this.

I don't think you've understood correctly. That doesn't say you need a linked account to pay in. If you read the section on how to pay in to the account it states you can transfer from any external account or pay in cheques.

National Savings? https://www.nsandi.com/help/ways-to-pay

I assume the grandparents think if the money goes into his current account it will just get swallowed up in day to day expenses, whereas if it goes into a savings account he has to think about it when he wants to use the money and transfer it over. It's seconds to do the transfer, but it's that extra step.

Must be about your 3rd thread asking the same question!

I can transfer to an HSBC savings account but that may be because it's for a child, you could try there

Define an "ordinary" account! 😁 From what I have read, there are "transaction" accounts that anyone can pay into using a sort code and account number and "non-transaction" accounts. Current accounts are transaction accounts. From what I can tell, most high interest savings accounts seem to be non-transaction accounts, because they're designed for longer term savings.

I have Halifax accounts that allow this - they have been open a while so whether this is a newer thing?
But surely as long as there’s a sort code and account number you can bank transfer in when you need to.
Id imagine the account needs to be advertised as easy access and not a fixed term one that only allows 1 deposit for example.

My DD has a savings account with Lloyds Bank and I send money from my accounts at a different bank and her Nan also send money to the account.

Yup, third thread, is that a problem?.It's the most helpful so far, so presumably I worded it better this time. The others got nowhere. Plenty of people telling me it can be done, but I'm still on the lookout for an appropriate account. I'm following up on all the suggestions here, to check. So far, the only ones I've found have been low interest, which isn't appropriate for longer term savings.

I expect a compromise will need to be made somewhere, but only when we've got tired of exploring options.

This. Are you confusing the linked account to pay out to?

Thanks. I looked at Lloyds. It seemed to be possible for a low interest account. The higher interest accounts needed a linked Lloyds current account.

It’s not correct that you can only pay into children’s Premium Bonds. The adult needs to open the account but I pay into my adult son’s PB accounts quite regularly.

I overheard a customer in the Halifax today being told this. Apparently, it was introduced about 4 years ago to preventoney laundering.

OP, they were told the money could be transfered in via their own online banking but not deposited directly.

Would that be a solution?

It's not clear whether a third party can make the payment, is it? This is what I'm finding - that I need to email and ask. It is why I was hoping to find people here with direct experience who could tell me exactly what type of account they are using.

Yes a third party can make the payment.

Is there a reason I'm missing why they couldn't transfer the money into his current account and he simply transfers it into his savings account?

Does it need to go into savings?

Could they do a Trust for him or start him off paying into a personal pension for him instead? Just throwing out some alternative suggestions...

Yup. It's why we're ideally looking for a notice account, where you have to give, e.g.. 120 days notice to withdraw the money. That way, it will only be withdrawn with some thought, and used for something special. I remember having a similar account, which I used to buy my first car.

If the money goes into DS's current (student) account he may or may not get round to transferring it somewhere sensible quickly and it would be more hassle to have to keep reminding him.

Do you have direct experience of paying into another adult's NS&I account?

(In any case, the grandparents don't like premium bonds so it would need to be a different type of account).

Unless they're giving away less than £3k per year in total (to everyone, not just your son) then from an inheritance tax perspective it would probably be better if it was a regular gift from their income (i.e. standing order) rather than intermittent.

In which case he could also set up a standing order from his current account to the savings account on the same date, so it can't get forgotten about.

Setting up a trust creates a whole extra set of legal obligations and complications. Unless it's highly significant sums and/or to provide for a disabled person, I personally wouldn't go down that route.

Thanks, yes, it looks like it may be possible with this one. The down-side is that the interest rate drops very low after the first year.