Current account or similar if you have savings but no income

[Saracen]

My daughter is about to turn 18 and gain access to her £40k Child Trust Fund. She has never had a bank account in her name because the responsibility of looking after money frightens her; however, she does need one now. She has a moderate learning disability but has capacity: I will help her manage her money but I am not her appointee.

At a minimum she needs an account of some sort in her own name for the CTF money to be paid into: it cannot be paid into an account in somebody else's name (maybe it could if I were her appointee, but that isn't the plan). Ideally she'd also have a cashcard and the ability to set up direct debits, standing orders and make online payments. I intend to get her to start paying for all her activities and outings directly.

She isn't employed or on means-tested benefits in her own right or at university - she is still in non-advanced education, so I don't think she'd qualify for a student account. The only income she has is PIP, which is about £5k per year.

Will she have trouble qualifying for a standard current account with such a low income? If so, what other options might suit her?

Thanks for any advice!

Just hopped on to say Nationwide Flex - at her age you shouldn't need to go into a branch for it (only under 14), and it's a great everyday account that she can keep after she's 18 with a decent app. Both my girls have them, and I suspect will continue to do so once they're 18. Nationwide will also allow you to transfer her child trust fund into an adult Isa without the Junior ISA bit first (see here https://www.nationwide.co.uk/savings/help/child-trust-funds-explained/)

In a savings account she can get £2000 pa interest at 5%.

How much more does she need to spend than what she has in PIP? Does she need to use the balance of the CTF, or the interest?

Is there an easy access savings account with a good interest rate? MSE lists the current offers.

But there does need to be a 'nominated account' - i.e current account to pay the money into.

Thanks for all the votes for Nationwide! That’s reassuring. Hope she gets accepted for it!

Yes, most of her money should stay elsewhere, whether that’s an ISA or savings account or both.

I’m belatedly thinking about her eligibility for means-tested benefits as her job prospects are unclear. There are bound to be jobs out there which she could do well, but finding one that fits feels quite challenging. Of course she’ll keep maturing and the picture will change.

So I’m going to start charging her board with a view to spending down her CTF money so she becomes eligible for Universal Credit eventually, if she can’t earn enough to make ends meet.