Can you set up an account for grandchildren?

Annie Shaw / 21 February 2017

Annie Shaw advises a reader on opening a bank account for a grandchild.



Question

I have grandchildren in South Africa and I’d like to set up an account here for them, in their names, to save for their future. 

Banks are not interested, as there will not be a large amount of money involved at the moment. 

Have you any suggestions?


Annie Shaw
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Answer

The problem is not the amount of money but, with the exception of National Savings and Investments, the near-impossibility under the money-laundering rules of opening accounts for any but your own minor children. 

You also need to consider how the children would eventually access the money: overseas residents with offshore accounts can find themselves in breach of local tax rules. 

The easiest thing to do is to save in your own name and remit the cash when the amount is sufficient, or leave the children a legacy in your will.

Did you know? 

1/5 of grandparents save regularly for their grandchildren, putting away on average £62 a month. This adds up to almost £13,400 before children reach 18.

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The opinions expressed are those of the author and are not held by Saga unless specifically stated.

The material is for general information only and does not constitute investment, tax, legal, medical or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.