Is this savings plan for newborn possible?

[Whirlwind2024]

I know that a junior stocks and shares ISA would get the best return over 18 years but we don’t want to risk DS frittering all the money away when he comes of age! We would like to save for the purpose of a future house deposit.

Instead, could we open a savings account in his name, keeping an eye on interest rates and moving accounts as necessary to get the best rate?

Then once he is 16/17, we close the account, withdraw the money and put it in an account in our name. This is to prevent him accessing the money at 18.

Then, depending on how he turns out (!), at 18 we can either support him to open a LISA (if they’re still around), or hold on to the money in our name until it’s needed for a house deposit.

I’ve read some banks can be funny about parents withdrawing money from junior accounts - is this right? How do you prove the withdrawal will ‘be for the benefit of the child?’

If you aren’t going to utilise his ISA allowance for tax efficiency, why don’t you just save it in your name and gift it to him when he’s an adult?

This. What's the point of having it all in his name if you're then going to retract that?

The bank account will be theirs when they are 16, not 18.

As junior account savings rates tend to be better than adult savings ones.

I opened a savings account for my neice when she was tiny. Her dad told her she (me) could take it all out to go on holiday at 13 years of age, so tight arse father didn't spend a penny. I've only just given her the savings book at age 24 ... not much in it though.

Just don't tell him about it until you are ready.

Of course you can do this. I’ve got multiple regular savings accounts for my son, as well as a stocks and shares ISA, and also a SIPP. I’ve also held a kids’ savers account and then transferred the money out when the rates dropped.