Grandparents savings accounts for grand kids

[WaitingForMe]

Is there any reason not to allow this? MIL is odd and controlling and wants to save for the children via her accounts rather than the ones we have for them in their names. Frankly I don't care what she does and I've told her not to open an ISA for them (that's what we opened for them) but are there any other limitations to be aware of?

In their names - she wants their birth certificates.

I have this too. We pay money into a regular saver account every month in each of the childrens names. It pays 6% - a pretty good rate, but each child can only have one such account.

MIL pays money £5 into an account for each child each month (set up when they were born, she borrowed the birth certs) but because the banks are sneaky, those accounts no longer pay any interest. At all!

I have told her and suggested she pays into the one which pays 6%, but she won't have it. She knows the accounts are in their names and there is no suggestion that I would use the money. She would rather earn no money and be in control than change them. I thinks she's being a bit mad, but hey ho, she knows best.

with current savings rates at peanuts (and savers continuing to be the lowest form of life) it is almost pointless for her to save in the rates she can get. The 6% child accounts only allow a tiny amount of money but it is better than the alternatives.