Setting up a savings account for nephew


#1

I want to set up a savings account for my newborn nephew that I will put money into over the years so hopefully by the time he gets it it will have accrued a nice amount of interest.

I’ve been told that only a child’s mum or dad (or legal guardian) can open an account in its name - fair enough, but it means that now I’m not sure what the best way to go about setting this up is!

I have YouMoney so technically could just open an account under my own name, but I wanted to be able to somehow have the account under his name, so it’s more ‘officially’ his. I’d also hoped to be able to keep an eye on what’s in the account and how it’s growing over time, althought wouldn’t need to access the money (wouldn’t need a card, for example) as it’ll be all deposits and no withdrawals until I pass over the account when hes older.

If anyone has any ideas for what kind of a set up I could do it would be much appreciated - maybe I could open a joint account with my brother (his dad) so we both have oversight of it?


#2

You could go with your brother to open the account in your nephew’s name, and be put on the account as a signatory/operating authority on the account. When your nephew is older, he adds his name to operating authority and takes over the account.  I have Rapid Save accounts in my children’s names, on which I am the signatory, and I will eventually hand over to them.

As an alternative to Rapid Save, you and your brother might look at opening a Kiwisaver account in your nephew’s name, and benefit from having the government contribute as well.