CU asking a 7 year old to sign a form to withdraw money

lifeandtimes

Hey,

My partners son (7) is due to have his communion soon, his mother has been saving money in his credit union to help pay for suit and supplies etc for the big day.

She set up the acocunt for him and went into the credit union today and to withdraw money to pay for some of the things but they wouldnt allow her to withdraw the money unless he was present and signed a consent form.

To be fair to him, he can sign his name moderately ok so she brought him back but other kids his age cant really, im wondering what the deal is here, as his legal guardian she can set up the account and deposit money, however to withdraw they need the written consent of a minor

Is this maybe just an obstacale to stop people withdrawing funds or can they elgally request a minor of 7 years of age to give written consent? How old would be too young in their eyes to ask for written consent?

my3cents

But what if a grandparent put money into the account for the grandchild why should the mother have free access to it to spend on anything they like?

lifeandtimes

my3cents wrote: »

But what if a grandparent put money into the account for the grandchild why should the mother have free access to it to spend on anything they like?

well in this case the mother set up the account, is the legal guardian and is the one who deposits the money. Seems strange they need the minor to sign consent

Mrs OBumble

Mammy should have been saving the money in her own account, not robbing from the kid's account to pay for predictable family expenses.

B-D-P--

Mrs OBumble wrote: »

Mammy should have been saving the money in her own account, not robbing from the kid's account to pay for predictable family expenses.

Would ya sthop... "Robbing the kids account"
She probably set it for savings for the kids expenses.

optogirl

[]

Mrs OBumble wrote: »

Mammy should have been saving the money in her own account, not robbing from the kid's account to pay for predictable family expenses.

should she? Pity she doesn't have access to you and your one size fits all advice

Mod
Plse stay on topic. No offensive remarks.

lifeandtimes

Mrs OBumble wrote: »

Mammy should have been saving the money in her own account, not robbing from the kid's account to pay for predictable family expenses.

Not that its any of your business but she set up the account so he can have a credit history with the credit union should he wish to apply for loans in the future while maintaining savings for him.

Quite responsible of her if you ask me

silent_spark

I would be more concerned if she had been allowed to withdraw money from his account in his name without his consent. Why did she set it up in his name if she wanted to be able to take money out of it whenever she wanted it? A standard savings account in her own name might have been more useful.

As the child is seven, he is the one who operates the account. A quick search online will give these details.

gctest50

lifeandtimes wrote: »

Hey,

My partners son (7) is due to have his communion soon, his mother has been saving money in his credit union ...........

They're well dodgy sometimes : https://www.google.ie/search?q=credit+union+scandal

use a bank instead

https://personalbanking.bankofireland.com/bank/current-accounts/junior-accounts/


https://aib.ie/our-products/savings-and-deposits/junior-saver

lifeandtimes

silent_spark wrote: »

I would be more concerned if she had been allowed to withdraw money from his account in his name without his consent. Why did she set it up in his name if she wanted to be able to take money out of it whenever she wanted it? A standard savings account in her own name might have been more useful.

As the child is seven, he is the one who operates the account. A quick search online will give these details.

Thanks for that, it so strange, where did the pluck the age of 7 from to be able to give consent for withdrawls from an account,most 7 year olds cant even tie their shoe laces, im not aware of any other establishment with this stipulation

silent_spark

lifeandtimes wrote: »

Thanks for that, it so strange, where did the pluck the age of 7 from to be able to give consent for withdrawls from an account, im not aware of any other establishment with this stipulation

I'm not sure why it's that age in particular, but it's the same for AIB; they allow children's accounts from age seven. While a guardian consents to the setting up of the account, the child signs for withdrawals.

MOH

Mrs OBumble wrote: »

Mammy should have been saving the money in her own account, not robbing from the kid's account to pay for predictable family expenses.

Right, because saving the money in a separate account in his name to ringfence it for the purpose of paying for his communion is totally irresponsible.

You must be trolling

Greybottle

gctest50 wrote: »

They're well dodgy sometimes : https://www.google.ie/search?q=credit+union+scandal

use a bank instead

https://personalbanking.bankofireland.com/bank/current-accounts/junior-accounts/


https://aib.ie/our-products/savings-and-deposits/junior-saver

296 Credit Unions in the Republic, link there to 5 where there was malpractice, probably a few more besides them. Which is 1.6% of all CU's.

As opposed to 100% of the larger traditional banks that went tits up here a few years ago. CU's do a bloody great job in this country and it's where I have my cash saved.

gctest50

Greybottle wrote: »

link there to 5 where there was malpractice

,

If you scroll to the bottom, you'll see a 1,2,3,4,5,6 thing




your bias is showing

rgace

gctest50 wrote: »

Greybottle wrote: »

link there to 5 where there was malpractice

,

If you scroll to the bottom, you'll see a 1,2,3,4,5,6 thing




your bias is showing

Maybe you can link to a financial institution that has not engaged in dodgy behaviour such as the DIRT scam or tracker mortgage scandal

GM228

There are various codes and regulations at play, but the rules are as follows:-

Q: Who can withdraw from the Account?

A: Money in a child’s account is the sole property of the child and no other person (including the parent/guardian or person who originally opened the account) is entitled to use this money for his/her benefit.

Who can withdraw from the child’s account

It depends on the age of the child:

• If the child is between 12 and 16 years old, the
minors themselves are the only ones that can sign for a withdrawal. In addition, it is not necessary for the child to be accompanied by an adult.

• If the child is between 7 and 11 years old, they are the only ones that can sign for a withdrawal but they must be accompanied by either a parent/guardian or the originator of the account.

• If the child is under 7 years old, then the parent/guardian (if they opened the account) or the parent/guardian named by the third party who opened the account, is the only person that can operate the account.

All credit unions should have this statement regarding accounts in a childs name.

Robbo

Moderation: Let's leave the discussion of the various pros/cons of Credit Unions over other financial institutions out of it.

beechwood55

When she opened the account, presumably she was given the terms and conditions. Did she read them?

Mrs OBumble

MOH wrote: »

Right, because saving the money in a separate account in his name to ringfence it for the purpose of paying for his communion is totally irresponsible.

You must be trolling

Banks allow you to set up special purpose saving accounts wherr you can ringfence money in your own name.

Who the *** is thinking about giving a seven year old a credit history. Especially in a country wjere its only just possible to get credit reports.

4ensic15

lifeandtimes wrote: »

Thanks for that, it so strange, where did the pluck the age of 7 from to be able to give consent for withdrawls from an account,most 7 year olds cant even tie their shoe laces, im not aware of any other establishment with this stipulation

I opened a post office account when I was 6. Until I was 7, I needed a parent as a co-signatory for withdrawls. 7 was also the age of criminal responsibility at that time. I was well able to tie shoelaces and would have done so if I had any shoes to wear.

Toots

lifeandtimes wrote: »

Thanks for that, it so strange, where did the pluck the age of 7 from to be able to give consent for withdrawls from an account,most 7 year olds cant even tie their shoe laces, im not aware of any other establishment with this stipulation

I'm not sure why they pick 7 specifically. I opened CU accounts for both my kids a couple of weeks ago and on the form there was the option to allow them sign from the age of 7 with a parent present. Once they hit 12 (I think) they can access it regardless of if a parent is there or not.

Sammy2012

My 2 kids have credit union accounts and when i was opening them I was told I couldn't take the money out of it until they were 7. And then they'd have to sign it. So I assume your friend would have been told this when she opened her son's.

john.han

lifeandtimes wrote: »

Not that its any of your business but she set up the account so he can have a credit history with the credit union should he wish to apply for loans in the future while maintaining savings for him.

Quite responsible of her if you ask me

You build up a credit history by borrowing money. Not by having savings as a seven year old. If you are saving for a communion do it in your own account, if you are saving for the kids future/college etc. do it in the kid's account.

ozmo

If it was set up to give the child the experience of saving and banking- then of course it’s only right he should be there to witness the withdrawal.

CU were correct on insisting on it.

jimmycrackcorm

lifeandtimes wrote:

Is this maybe just an obstacale to stop people withdrawing funds or can they elgally request a minor of 7 years of age to give written consent? How old would be too young in their eyes to ask for written consent?

I was only looking at the same for my own CU for a child account today and I saw the same. It's part of the rules so I don't see the problem when you sign up.

I gather that the idea is to instil some responsibility for kids in that they stress that you should get your kids into to the concept of saving and this is one mechanism where they encourage kids to be aware about saving.

Peregrinus

I had a post office account from the age of about 8; the money in it was my money; nobody could withdraw it except me.

If the woman in this case wants to ring-fence some of her own savings for a particular purpose, she should open an account in her own name.
She will then control it. If an account is opened in her son's name then any money she (or anyone else) pays into it is a gift to him and it belongs to him. He controls it.

In my case there was never more than trivial amounts of money in my account, and I had no difficult making transactions without involving my parents. I'm sure if I had wanted to withdraw a more signficant sum, questions would have been raised about my capacity, judgment, etc in dealing with such an amount of money, so they might have wanted one of my parents to countersign. That never arose, though. But I'm certain that my parents could not have withdrawn my money without my consent, or a court order.

MOH

Mrs OBumble wrote: »

Banks allow you to set up special purpose saving accounts wherr you can ringfence money in your own name.

Who the *** is thinking about giving a seven year old a credit history. Especially in a country wjere its only just possible to get credit reports.

So earlier you were accusing the mother of stealing her child's money. Now you appear to be complaining that she used a credit union instead of a bank. I'm getting confused, could you make it clear exactly what we're supposed to be lynching the mother for?

Johnboy1951

Do Credit Unions do dual accounts where two parties have withdrawal rights?

Johnboy1951

Johnboy1951 wrote: »

Do Credit Unions do dual accounts where two parties have withdrawal rights?

Yeah, a joint account? Just operates like any other joint account, i believe.

Mrs OBumble wrote: »

Banks allow you to set up special purpose saving accounts wherr you can ringfence money in your own name.

Doesn't really seem to be the case in my experience. Credit Union have 2 savings accounts by default (or at least my local one does, anyway).

But I'm with BOI and I would like to have a separate savings account (in fact i'd like to have several separate accounts for different things, to be honest) but they said I couldn't do that, when I asked them. (CU also said I couldn't create a new savings account).


I do recall the post office saying that when you bank with them you can open savings accounts within savings accounts to save for different things (they called them 'wallets'). I thought it was clever but never moved to them.

Johnboy1951

Deleted User wrote: »

Yeah, a joint account? Just operates like any other joint account, i believe.

Thanks, yes, that was the terminology that escaped me

Doesn't really seem to be the case in my experience. Credit Union have 2 savings accounts by default (or at least my local one does, anyway).

But I'm with BOI and I would like to have a separate savings account (in fact i'd like to have several separate accounts for different things, to be honest) but they said I couldn't do that, when I asked them. (CU also said I couldn't create a new savings account).


I do recall the post office saying that when you bank with them you can open savings accounts within savings accounts to save for different things (they called them 'wallets'). I thought it was clever but never moved to them.

That idea of 'wallets' seems like a good one for managing things.

CIARAN_BOYLE

MOH wrote: »

So earlier you were accusing the mother of stealing her child's money. Now you appear to be complaining that she used a credit union instead of a bank. I'm getting confused, could you make it clear exactly what we're supposed to be lynching the mother for?

If the money is in an account in the child's name it is the child's money as far as the credit union or bank is concerned. If you want a account in your own name and your credit union doesn't offer it (most dont) talk to a bank.

No one should be lynching anyone but legally the credit union is acting to prevent the theft of the child's money by requiring the child's consent to withdraw the child's money.

soc

Mrs OBumble wrote: »

Banks allow you to set up special purpose saving accounts wherr you can ringfence money in your own name.

Who the *** is thinking about giving a seven year old a credit history. Especially in a country wjere its only just possible to get credit reports.

Well actually we're currrently saving for a mortgage, and I was told by broker to set up accounts in my children's names (4 of them and all under 7) and make regular monthly payments to show that we can pay rent, put money into our own savings and put money into children's savings account for college. He said that we can then use the money from children's accounts when compiling deposit money together - purpose of this is to show bank that when we get mortgage, we are still well able to pay mortgage, save for ourselves and save for our children's college (or other future aspirations they may have).

L1011

That broker advice sounds highly suspect

irishrebe

lifeandtimes wrote: »

silent_spark wrote: »

I would be more concerned if she had been allowed to withdraw money from his account in his name without his consent. Why did she set it up in his name if she wanted to be able to take money out of it whenever she wanted it? A standard savings account in her own name might have been more useful.

As the child is seven, he is the one who operates the account. A quick search online will give these details.

Thanks for that, it so strange, where did the pluck the age of 7 from to be able to give consent for withdrawls from an account,most 7 year olds cant even tie their shoe laces, im not aware of any other establishment with this stipulation

I don't know what kind of seven-year-olds you know. I could tie my shoelaces at 4, when I started school and learned to write my name around the same time. Nothing strange about asking a child to sign and be present when money is being taken out of their own account. Plenty of circumstances where other family members (grandparents, father if separated, etc.) could have put money in there for the child's future, not intending the mother to take it out.

Mrs OBumble

soc wrote: »

Well actually we're currrently saving for a mortgage, and I was told by broker to set up accounts in my children's names (4 of them and all under 7) and make regular monthly payments to show that we can pay rent, put money into our own savings and put money into children's savings account for college. He said that we can then use the money from children's accounts when compiling deposit money together - purpose of this is to show bank that when we get mortgage, we are still well able to pay mortgage, save for ourselves and save for our children's college (or other future aspirations they may have).

I hope you don't end up with a 7 year old who doesn't want to move to a neighbourhood saying "no" when asked to agree to money being taken out of his/her account to let Mammy and Daddy buy a new house to live in.

Being able to demonstrate savings for your children's future aspirations is not a test which banks apply when considering mortgage applications. I'd be looking twice at advice from that broker.

Carawaystick

gctest50 wrote: »

They're well dodgy sometimes : https://www.google.ie/search?q=credit+union+scandal

use a bank instead

the Little Miss Carawaysticks had money in Rush Credit Union when it went wallop, and the Central bank had cheques out to them within a week. No Bank would let them open an account to lode the crossed cheques but a more progressive credit union had no issue opening a/c and lodging their money.

jluv

My mother has always set up savings accounts for her grandkids (when 1 account gets to a certain amount she starts for the next one...but don't tell them..its a secret!) The last one she set up though she couldn't just do it. My sister and nephew both had to go with both bringing I'D and the rules and regulations were explained to my sister(we had to spin some story to my nephew...they don't get it till 18 years old) while a pain to get set up I think it's only right. I'd hate to think children accounts might be used for something other than saving for their future or teaching them the value of saving.
On the wallet system...the credit union used to do the saving stamp thing since done away..however there are sub accounts to a credit union account which could be used to save for specifics..eg I do my regular savings but have a sub account that a small amount goes into weekly but is used say for house insurance car insurance etc