More people than ever are using a lasting power of attorney to manage the finances of loved ones who can’t do it themselves, but new research shows that some of the best savings accounts on the market are off-limits to them. This can make it harder to get a good return on money, even when attorneys are simply trying to do the right thing on behalf of someone else.
Limited Access to Top Deals
There are more than eight million registered LPAs in England and Wales. However, some banks that have been offering the best deals in recent months don’t let attorneys open accounts. That means fewer options for people trying to get the best return on their loved one’s money.
In some cases, platforms say that their systems aren’t built to support third-party access. So even if someone has the legal right to manage the account, they might still be blocked from using it. This can lead to frustration for attorneys who want to move savings to better-paying accounts but can’t because of provider rules.
It Could Cost You More Than Interest
Not being able to open different savings accounts doesn’t just mean missing out on better interest. It also means you might not be able to spread savings across different banks. This matters because the Financial Services Compensation Scheme only protects up to £85,000 per person, per bank, so having money in several banks is often safer.
Changes May Be Coming
There have also been wider complaints about how banks handle LPA cases, from long delays to confusing processes. The Financial Conduct Authority is now reviewing how banks deal with vulnerable customers, including those who set up their power of attorney online, using a site such as https://powerofattorneyonline.co.uk. The FCA plans to publish its findings soon.
Setting up an LPA early is still a good idea, especially if there are signs of illness or memory loss. But until more banks and platforms update their systems, those using an LPA may continue to face unfair limits when trying to manage savings properly.