We want to set a up Freetrade account up for my nephew. It’ll start with circa £4k but additionally my Mum would like to contribute a regular monthly amount. All the money will be invested in to a maximum four but probably three investment trusts.
My question is can my Mum pay monthly in to my 18 year old nephews account be it a GIA or ISA account from her bank (direct debit/standing order) or from her debit card?
I’ve looked through Freetrade’s fees and contributions sections but I can’t see this mentioned anywhere.
If anyone knows the answer to these queries I’d much appreciate it.
Hi LukeHere, welcome. I’m pretty sure the bank account needs to be in same name as the Freetrade user for Know Your Customer reasons. So nephew can open an account but you might need to hand him the 4k and he put it in
As Rod says, no. Absolutely not. Verification for the user is done on account setup. This naturally needs to match the identify of the person who’ll be using the account.
This is why Junior ISA accounts exist. I don’t believe Freetrade plan on offering that account type soon, though. If the person you want to help out is over 18, they’d need to setup the account themselves and be given the funds to fund it.
On the note of funding, automated regular top ups aren’t yet available here.
It’s a lovely gesture from you and your mum - she could transfer the money to your nephew for him to invest (if he could be trusted to do so and also trusted to not just cash in the £4k invested in the 3 investment trusts?)
I invest for my nephew too but the investment is within my own ISA, in an investment I don’t own in my own portfolio (so I know it’s his) and I intend to gift to him when he turns 21 (he’s currently 14).
Or maybe when he turns 18 and downloads the Freetrade app himself…
As a third party, you are allowed to contribute to an ISA for someone else. Using our online application, you will have the option to provide your payment details once the account holder has given consent.