I think you know your PIL better than any of us, therefore if you have ill feelings about handing over the BC then don't do it. But DO ask yourself are you genuine in your feelings or reacting to this recent event.

If you genuinely feel "off" about handing over the BC (forgetting the recent event) then don't do it as a lot can be said for mothers instinct.

If it really is just about this bank thing then that is up to you.

Personally I do not see the need for multiple accounts for a child. I cannot see why they cannot open an account for her in their own name. I would find it pretty unusual that a bank would allow someone other than the parent or guardian to open an account for a child - has your DP had a hand to play in it?

To me something does seem off. I wouldn't give the BC personally and I would be contacting the bank society that they have (or plan to) open the account with and speak to the branch manager. Yes its behind their back but it just doesn't seem right.

Nae x