Children given gift of £5000

wanttobeasaver

HI,

Wondering could anyone advise me my two children have been given a gift of £5000 each, & i was just wondering what would be the best way to invest it for them? they are aged 9 & 11......

isofa

http://www.moneyfacts.co.uk/savings/bestbuys/childrens-savings-accounts.aspx

http://www.moneyfacts.co.uk/savings/bestbuys/childrens-savings-accounts-other.aspx

CLAPTON

when you say 'invest' do you mean 'invest' as in stocks and shares or simply putting it in a savings account?

a7man

You have loads of options, depends whether you want interest, growth, high risk, low risk....

wanttobeasaver

Im relly just meaning a savings account type of thing.......thanks for advice so far

a7man

You could put it in a child saver so they wont have access until they are 18/21. If you invest in equities generally they will start as higher risk and switch to v low risk near their 18th/21st birthday. Alternatively you could put it in a fixed interest savings account.

Energize

I would put it in a fixed rate bond, you can get 7.2% for 1-3 years now.

Marleyandme

I watch this thread with great interest as I'm waiting for some inheritance to come through for my 3 children.

2 accounts I have shortlisted are the Abbey 4yr children's bond (6.1%) and the yorkshire building society Treasure Bond at 6 % one yr fixed. (rolls over into a new deal each year). Both can be opened in trust and are specifically for children. Some of the higher interest bonds are tempting but just bear in mind you may end up paying tax on them even if it is opened in trust. Best to check with provider first.

Northern Rock has a 5yr fixed at 7% but as things seem so messy with them atm I'm not going to risk it.

Yorkshire BS also do a rollover bond which looks similar sort of thing to the treasure bond, but can be opened for older children in trust