I'm just having a 'talk' with OH about setting up a saving a/c for DGC. He is certain that the DGCs parents will have access to this a/c, which he doesn't want. If any of you have one of these a/c, is he correct.
From What I've just read, it looks as though they could withdraw money from it, after the first year. There.s the 6% interest one from which no one can withdraw money, but then after a year, it goes into the Young Saver with 3.5 interest, and it says, "you and your child can make withdrawals".
Probably best to ring Halifax and ask them.
Have you considered Junior Isas? No tax to be paid on those.
We started an account with Yorkshire Building Society after our grand-daughter was born (she is now almost 15). The account is in my name and they have put underneath my name 'As trustee of - then my grand-daughter's name'. I am the only person who can withdraw from this account. She will be able to when she is 18. Her parents cannot withdraw from this account. The interest was very good at first but has gone down now obviously, but it's not too bad. I do not pay tax on the interest. When she is 18 I will hand the book over to her (with her parents' consent).
We opened accounts for our grandchildren in our names for the children. Only we can withdraw but have no intention of doing so. The reason we did it was the Nationwide has a Smart limited access account paying 3% which was the best at the time. It can be quite difficult to open new accounts if you don't already have accounts with the b.s. and we had Nationwide accounts but the parents didn't. The parents had to sign the R85 forms for gross interest. We can access the accounts online and will probably either allow the parents to take over the money at some stage (they can be trusted) or give the money to the children when they are over 18 and deemed 'responsible'.
We opened a Halifax account - the six percent one - for our grandson, which reverted last year to the easy access account, but we are the controlling adults, so only we, or our grandson if he had the account details, could take money out, not his parents. Any paperwork comes to us and not to them. They are quite happy with this but I know that even if it was in their names, it would be perfectly safe for him. He's only eight and not interested in money at the moment, but he could have a cash card if he chose.