Gareth Shaw: How best to save money for grandchildren overseas
I would like to create a savings account for my granddaughter to benefit from in the future. However, as she lives in New Zealand I cannot open a UK account in her name, and have been unable to find any way in which regular savings can be ring-fenced for her future benefit. Do you have any suggestions?
Name and address provided
Gareth says…
This is a tricky situation.
Very few, if any, banks will allow you to open up a savings account for somebody that is not a resident in the UK.
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Hide AdThe reasons why are sound – banks cannot facilitate fraud or money-laundering and while your purposes are purely innocent, there is a risk that criminals based overseas may attempt to exploit the banking system were they able to have accounts set up on their behalf.
And as your granddaughter is not a UK resident, she cannot tap into the perks that younger savers enjoy in the UK – namely the Junior Isa.
This is the under-18s version of the adult Isa, which allows parents, grandparents and friends to contribute up to £4,368 in this tax year and sees all the interest you earn accumulate tax-free.
The money can be invested in cash or stocks and shares, or a mix of the two. The funds cannot be accessed until the age of 18 – one of the benefits you’ve said you are looking for.
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