List of Organisations that offer accounts for Trusts

Trusts Discussion
1

Is there an up to date list of UK Banks, Building Societies or Investment Organisations that offer accounts (preferably interest bearing) for Will Trusts? One with email addresses would be extremely helpful.

Thanks.

2

My question is “why do the trustees need a “trustee account”?” If A and B (a) own assets and (b) are trustees, then why can they not deal with those assets qua trustees but otherwise as ordinary investors? cf the position with partnerships.

3

When opening a bank account, under the Anti-Money Laundering Regulations, etc. a bank is required to verify the identity of the account holder(s) and the source of the funds. When opening a personal account, the application includes a warranty that the monies are the account holder’s personal property.

If the accountholders are trustees and fail to declare that fact, when it becomes aware of the true circumstances I understand the bank has the right (perhaps even an obligation) to freeze the account and, maybe, close it. This could have significant consequences not only for the trustees, but also for the beneficiaries if they are relying upon the receipt of funds from the trust.

I do not believe the question has been tested before the courts, but if the beneficiaries/trust suffers loss due to the freezing/closure of the bank account in these circumstances, I suggest the trustees could be personally liable to compensate the beneficiaries/restore the trust.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

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4

I ran a query on ChatGPT to list Bnks/Building Societies that offered cheque and deposit accounts for Trusts and this was the response…

Establishing trust fund accounts in the UK involves selecting institutions that offer either cheque (current) accounts, deposit accounts, or both, with the option to lock in the principal for a specified term, such as 30 months. Below is a list of UK banks and building societies that provide such services, along with their contact information, interest rates, and associated costs:

1. Cater Allen Private Bank

  • Contact Information:
  • Reserve Account for Trusts (Cheque Account):
    • Interest Rate: Not specified; subject to change based on balance and market conditions.
    • Features: Provides instant access with up to 30 debit transactions per month.
    • Costs: Details not specified; advisable to contact the bank directly for comprehensive information.
  • Fixed Term Deposit Account for Trusts:
    • Interest Rate: Varies based on term length and prevailing market conditions.
    • Term Lengths: Typically range from 1 to 5 years; a 30-month term may be negotiable upon request.
    • Minimum Deposit: ÂŁ50,000.
    • Withdrawals: Not permitted during the fixed term.
    • Costs: Details not specified; advisable to contact the bank directly for comprehensive information.

2. Bath Building Society

  • Contact Information:
  • Trust Account (Deposit Account):
    • Interest Rate: 0.80% AER for balances between ÂŁ1 and ÂŁ250,000; 0.00% for balances above ÂŁ250,000.
    • Minimum Deposit: ÂŁ1.
    • Withdrawals: Permitted up to two times per calendar month without penalty after an initial six-month period.
    • Costs: No specified fees; however, terms and conditions apply.
  • Note: Bath Building Society does not explicitly offer a 30-month fixed-term account. However, their Trust Account provides flexibility with interest earnings and withdrawal options.

3. Mansfield Building Society

  • Contact Information:
    • Email: savings@mansfieldbs.co.uk
    • Phone: 01623 676350
    • Address: Regent House, Regent Street, Mansfield, Nottinghamshire, NG18 1SS
  • SIPP Trust Cash Deposit Account – Pension 180 (Deposit Account):
    • Interest Rate: 4.00% AER/Gross.
    • Minimum Deposit: ÂŁ25,000.
    • Withdrawals: Subject to 180 days’ written notice; payments made by cheque or electronic transfer to the designated SIPP bank account only.
    • Costs: No specified fees; however, terms and conditions apply.
  • Note: Mansfield Building Society offers fixed-term accounts with specified terms. While a 30-month term is not explicitly mentioned, discussing specific requirements with them may provide tailored solutions.

4. Metro Bank

  • Contact Information:
  • Trust Fixed Term Savings Account (Deposit Account):
    • Interest Rate: Fixed for the term of the deposit; specific rates vary based on term length and market conditions.
    • Term Lengths: Typically range from 1 to 5 years; a 30-month term may be negotiable upon request.
    • Minimum Deposit: ÂŁ10,000.
    • Withdrawals: Not permitted during the fixed term.
    • Costs: No specified fees; however, terms and conditions apply.
  • Note: Opening a Trust Fixed Term Savings Account requires an existing Metro Bank Trust Account for interest payments.

5. Harpenden Building Society

  • Contact Information:
  • Trust Accounts (Deposit Account):
    • Interest Rate: Not specified; subject to change following Bank of England base rate adjustments.
    • Minimum Deposit: Not specified.
    • Withdrawals: Terms not specified; likely subject to account-specific conditions.
    • Costs: No specified fees; however, terms and conditions apply.
  • Note: Harpenden Building Society offers various trust accounts. While a 30-month fixed term is not explicitly mentioned, discussing specific requirements with them may provide tailored solutions.

Important Considerations:

  • Interest Rates: The interest rates provided are subject to change and may vary based on the account balance and prevailing market conditions.
  • Fees and Charges: Specific fees and charges associated with these accounts are not detailed in the
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5

Cater Allen only do it through an intermediary.

6

Despite Dysons’ comments, I would have said that the main contenders are Cater Allen and Metro.

A few thoughts which might be helpful:

Cater Allen
As I understand it, Cater Allen’s parent Santander are considering quitting the UK market. Subject to that, the bank’s fixed term deposit rates are reasonable.
Cater Allen’s trust current accounts are the best where one has mandatory co-signatories (because one can still authorise transactions online with this bank).
The account opening forms are particularly involved.

Metro Bank
Deposit rates are currently poor and the bank’s recent financial difficulties are well known.
The application forms are far easier to complete than Cater Allen’s.
Mandatory co-signature accounts are difficult to administer – the simplest/most efficient means to arrange electronic transactions being a completed payment instruction form with call-back verification from the signatories.

Subject to all that, if a trust has significant sums to deposit, a combination of a current account with either Metro or Cater Allen teamed with a trust account with the Flagstone deposit platform is probably the way to go.

7

Hi Paul, Thank you very much for the info. I looked into flagstone and the minimum deposit for a trust is ÂŁ1m. The Trust I have to manage is much more modest at ÂŁ120k but is made more complex as the only beneficiary is my niece who is a US citizen living in California. The Trust will be disbanded in March 2028 and Ii am trying to find an account that will give her a reasonable rate of interest. Needless to say I am way out of my depth but am trying to preserve as much of theher inheritance for her as is possible!

8

With £120k to deposit, i’d have thought that Cater Allen would be the ticket (for as long as their deposits are guranteed by Santander that is) - their fixed term deposit rates are curently 3.85% for 12 months or 3.65% for 24 months - minimum deposit into either is £25k.

9

The Dudley Building Society offers an instant access trust acount paying 3.4%. The account opening process is very straightforward.

10

Hi Hugh, Thanks for the response. Is this suitable for Will Trusts? I could only find reference to Child Trusts.

11

Stephen

I don’t know the answer to your question but suggest you contact Dudley directly. In my research of interest bearing accounts for trusts, Dudley’s offering was the best. Their service is very good. The account is a postal only and was fairly easy to set up. Good luck

12

Stephen

The account we opened with the Dudley was in the name of a Discretionary Trust.

13

I manage two family will trusts and they have bank-like trust accounts. One uses Skipton BS (min balance now I think ÂŁ5K) and the other Bucks BS (min balance was ÂŁ1K). Interest rates not wonderful, but useful places for ready access cash. Neither offer online access. Note that investment management companies like Hargreaves Lansdown also offer trust accounts for both investments and cash holdings, and offer various cash term deposits, and do support online management.

14

Thank you David. I will investigate.

15

Hugh, Thanks for the info.