Best Way to Save for Grandchildren?

Churchpolly · 4 December 2009 at 1:35PM

Hi, I want to invest £10 a month for each of my four grandchildren aged between 4 years and 8 months so that they have a lump sum on their eighteenth birthdays - their parents have child trust funds for them but I dont like the thought of putting all our eggs in one basket! Equally I dont want to just put it into a savings account as I feel the returns would be very low at least for the forseeable future - I would like to just pay by direct debit each month and forget about it. So, I turn as usual to the wisdom of forum members for ideas/recommendations, thanks alot, Polly.

margaretclare · 4 December 2009 at 2:28PM

I did one some years ago for my 3 - it was then called the Tunbridge Wells Equitable Friendly Society. I 'googled' it and see it has morphed into something else but with similar aims: see http://www.thechildrensmutual.co.uk/

EdInvestor · 5 December 2009 at 9:02PM

Those friendly society bonds are not a good deal these days if they are invested in the society's With profits fund because the high charges and low returns tend to wipe out the tax free gains.If you can find a unit linked bond which invests in a tracker fund, say, that should be better value.

http://www.familyinvestments.co.uk/childrensinvestments.aspx#JB

The Junior Bond mentioned here seems to have a couple oif reasonable unit linked options.

Churchpolly · 6 December 2009 at 10:37AM

Thank you Edinvestor so much, this is just the sort of thing I am looking for. I received payment from a Friendly Society Fund last month which I had paid into for ten years and I got less back than I paid in - and your reply explains why! I will certainly investigate this option and thank you MargaretClare for your respnse. kind regards Polly

Best Way to Save for Grandchildren?

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