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?

Their estate isn't big enough for inheritance tax, so it's not an issue for them.

I don't know how much or how often they intend to give - I did ask but it was clear they didn't want to be specific. That does make it more difficult to find the best type of account.

Most savings accounts need to be renewed every year or so to get access to the best rates.

Notice accounts generally don't.

With Chase you can. You can also create new accounts with the click of a button, pretty much.

I’m sure you don’t mean to be but you’re coming across as really rude. You might try saying please and thank you to people trying to help you.

Google is your friend. I’m not, so I’ll let you do your own research.

From a commercial perspective, what you're asking for is really limited - banks exist to make money, hence if you want high interest the conditions are tighter.

You effectively want restricted access for the DC but unrestricted access for deposits plus high interest.

If inheritance tax is not an issue and the grandparents want to save up for a house deposit in a high interest account that won't actually get spent by mistake - why can't they set up their own savings account and gift it once the DC are looking for a house?

If they're worried they won't be here by then, all they have to do is write it into their will where they want the funds to go.

Have you looked on money saving expert website ? Under money, savings, pensions, ISAs, stoozing etc ?

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 That way, it will only be withdrawn with some thought, and used for something special.

Tell the grandparent to offer to pay or contribute when he is needing/wanting something special
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Trying to control the finances of a grown man is weird.

I have been thanking people (there's a button for that). When I asked if you had direct experience, it was a genuine question, to help put your previous post into context.

If it was possible to easily find suitable accounts by googling, I wouldn't be here, and I certainly don't expect others to be googling for me. I was wanting to tap into people's direct experience.

Only when you're opening the savings account. Usually you can't open a savings account without opening a current account with that bank first. It's the banks way of trying to get you to be a 'full' customer. And a way of facilitating internal transfers rather than allowing customers to make third party payments. Every account in the UK has a sort code and account number associated with it. Once you have that you can give it to anyone to put money into an account. It's far easier ti put money in an account than taking it out of an account which is where the linked aspect comes in.

Not if it isn't a "transaction" account. We bank with Nationwide and I've tried transferring money directly to DS's existing savings account, but I get an error message.

I'm hopeful that a couple of the small Building Societies in the Times list of best Notice accounts may be the answer - I just need to phone them on Monday to confirm. 🤞

Get him to set up a normal Monzo account and then add a savings pot in the app. It’s 4% interest.

Give grandparents the normal account details and then he can transfer it into the savings pot on the app.

I literally work in this field for one of the big banks. I can't comment on Nationwide but if you go with the likes of NatWest, RBS, Lloyds you will be able to pay into one of their savings accounts. Long term accounts tend to be fixed rate ones and they are set at a fixed rate for a fixed term and once the initial deposit period is over you can't add additional funds. As he is 19 he is an adult so child accounts are not applicable. If you go into one of the online comparison sites you can look at the highest paying accounts. But if it's a regular saver you want (ie regular deposits) then you'll get a lower rate than a fixed rate account which is where you deposit a lump sum for a fixed term.

Also I have a few savings accounts with Marcus. And have a monthly standing order set up to pay into them. The linked account is just for outward payments. Try them too

Go for Zopa. Pays more than Monzo

This one has a 5.5% AER and explicitly says in the T&Cs that 3rd party deposits are possible up to a max of £500 a day, so it is front runner at the mo: https://www.thetipton.co.uk/our-savings/current-savings-rates-1/notice-savings/120-day-notice-account/

That’s a variable rate of interest though, so the interest rate could drop overnight if the Bank of England rates drop.

Of course that’s your choice, but I prefer to fix for a year and then re shop around as you can usually renew at the then prevalent rates. If rates go up, you can move to a new easy access account but if they drop you’re stuck for 3 months on that notice account.

Mine’s an older account but i can pay in with anything but only pay out to a linked account (and the FAQs imply that’s still the case, but I’ve not read actual T&Cs).

Yes, it's a choice. If/when rates come down it will be gradual, and there will be time to react.

Variable rates will also impact the fixed term accounts you might consider switching to at the end of a deal.

Really? That is really useful to know, thank you!

Their website says you can't but I have tried it anyway. If it works for you, it may work for me!

I also thought the minimum spend was £100 but see it's £25 so I just tried that at this point.

Ohh, I’ve had a standing order into their accounts for about 5 years!

The money laundering regulations were tightened in 2020, so maybe they just don't allow it on accounts set up since then.

Nationwide allow it. My dd grandparents (mil and fil) pay a small amount per month into her account...think £20 but it's slowly adding up. I control the account they just pop the money in.

Sounds like a junior account, not an adult account, yes? We're with Nationwide and the adult savings accounts don't seem to allow it. (But if it is an adult account, which one is it?)

Anyway, we're sorted now - probably going with the Tipton 120 day notice account linked above.