Trustee Savings Bonds

Trustee savings bonds are savings accounts set up and managed by a trustee on behalf of a beneficiary who may be too young or incapacitated to handle such financial affairs.  A trustee savings bond could also be used as a place to look after the funds of a charity or for employers to store funds for employee benefit schemes.

As with other types of savings accounts, trustee savings bonds can vary in the rates and terms that each provider offers. Therefore, if you are interested in setting up a trustee savings bond, it is strongly advised that you carefully consider all of the options that are available to ensure that you get the best possible deal.

Our trustee savings bonds comparison tables below contain details of some of the leading deals currently on the market:

For alternatives to the above trustee charity saving account deals, see our selection of structured deposit plans below. Structured deposits are term deposits (like a fixed rate bond) offered by firms such as high-street banks which are able to accept deposits. Structured deposit plans which are available for trusts are designed to return capital at maturity plus a return linked to the performance of an underlying asset e.g. the UK stockmarket.

These types of plans are worth considering if capital can be committed for the plan term and you are looking for a potential return better than a traditional fixed rate bond.

It may be possible to set up a trustee savings bond for the following types of trust:

Bare trusts
This type of trust involves the beneficiary having an immediate and absolute right to the capital and interest in the trust.

Interest in possession trusts
This would entail the beneficiary having the right to trust income after any trustees’ expenses are taken out.

Discretionary trusts
A discretionary trust would generally entail trustees being able to decide how to use the trust’s income and, in some cases, the capital.

Contingent trusts
With such trusts, the beneficiary would be entitled to receive capital or income upon satisfying a prior requirement, such as reaching a certain age or surviving a specified person.

There are a number of different types of trustee savings bonds on the market, all offering different features.  As you compare trustee savings bonds, you might wish to consider:

• Access options: instant access or notice
• Methods of operating the account, such as by linking it to an existing account
• The interest rates offered

Keep all of these various options in mind while you are looking at the details of individual policies by different providers.