Not being an authorised signatory on my child’s savings account?

[Qnc12345]

I have recently had a baby and my parent has said they would like to open a savings account for the child at their local building society. This is very kind and of course I have no objection. My child will get access to the money once they turn 18. I know it won’t be the best savings vehicle but I feel it’s more about the gesture than getting the very best return.

My parent can be rather funny about money and despite the fact I have a well paid career, a house and mortgage, no money problems etc, in my parent’s mind they have always thought of me as some frivolous spender who lives the high life (couldn’t be further from the truth, sadly!).

So, my parent has stipulated that only they can be an ‘authorised signatory’ on the child’s account, because otherwise they do not trust me not to withdraw the money they put in and spend it on other things. (My thoughts on this would be a whole other thread!!)

My question - is there anything I need to consider in this regard? My parent wishes to keep the passbook in their house. But isn’t it a bit unusual for the parent not to be a signatory? Is it even allowed?!

(As an aside, it is sadly likely that my parent will leave us before my baby turns 18 so I am not sure what they think will happen to the account at that time…)

Just let them get on with it op. Don't let them think they have power over you...

Absolutely - I just mean there anything legally such as a legal implication that I’d need to consider? Of me not being a signatory?

It’s a silly plan anyway, most 18 year olds will not make a good decision when they get the cash.

Let them bash in. Nothing to stop you having your own savings account for your own child.

Agreed! Funnily enough, just yesterday I was researching SIPPs for DH and I to open for the baby, purely so whatever we save won’t be wasted at 18!

Let them off. I don't like any savings plan that hands the money to the child at 18 but it is their money. I would be tempted to say to them "oh that's great. Let's hope he is not as irresponsible as I am when he turns 18 - why he might spend all his money on a house deposit!"

I agree with this, thank them for the kind gesture then never bring it up again. They may save up thousands or they may not do it at all, it's out of your control so give it no more headspace and enjoy your baby.

Okay, sounds like there is nothing from a legal perspective (or similar) that I need to consider so in that case I am as I said more than happy to let them crack on with it.

Still in two minds whether or not to ask them to justify the massive insult they handed me though! As if I would steal from my own child?!

Ha - very good! I might actually use that!

MIL set up a bank account for DS. We weren’t signatories on it. Don’t think she was allowed to take money out of it though as it was solely in DS’s name and he only had access to it at 18.

@Qnc12345 they sound like the type who have put you down in the past to say something like that. It's like baiting. I wouldn't even acknowledge it. If they bring it up again ( the whole savings account), just be strong and confident in your voice and say ah that's nice and change subject immediately.

It's all about power I agree. If that comment about you comes up again then absolutely put them right;

That's not how I see myself so we'll have to agree to disagree there. We have separate arrangements also for DC savings wise so that will be a great addition for them.

Then change subject. Don't give further details ref your own savings ideas.

There won't be any legal implications assuming they haven't opened a Junior ISA, Junior isa could be an issue if you wanted to open one.

But I'd step back from it and let them bash in. However I would if you can afford to open an account either in your name or the child's name for a uni fund.

Why don't they just open a Cash JISA? There is no way anyone else (apart from your child when they are 18) can access it. If they open a JISA foe your child, you can still top it up as long as you know the sort code and account number. The only problem with that is that the yearly statement will be sent to their address unless they ask it to be sent specifically to your address.

I wish someone does this for my daughter. It is a nice problem to have 😆

I have two kids who turned 18 recently and got some child trust fund money, I think it was about £400. It got blown straight away.

They are not bad or stupid kids, just not good at planning for the long term. I’m just glad it wasn’t a serious amount of money.

When they are small you think that by 18 they will be adults. But they are mostly just 12 year olds in adults bodies.