Savings for Granddaughter

geoffwilde

I would like to invest £50 per month for 20 years, for granddaughter. I want her to be able to draw it when she is 21. I don`t want myself to be able to touch it, Can you advise what is the best? We don`t need life cover. Thank you.

sergeant121

I found http://www.qck.com/child-savings.0.html?searchsite=google&sourcekey=child-savings interesting reading.

And, of course, there's:

The Government has announced plans for a 'child trust fund', a tax-free savings account into which Government 'endowments' will be paid at birth and at ages 5, 11 and 16. Government contributions are expected to be at least £250 at birth and up to £500 for children in lower-income families.

Fatboy_NSS

The Child Trust Fund matures when the child is 18, not 21.

If you can guarantee the £50 a month deposit then speak to a financial advisor at the bank as they have access to better products than the "standard" accounts. Otherwise just pick the best of the childrens accounts on one of the financial websites. Moneyfacts shows Saffron Walden Building Soc paying the best rate at the mo at 5.35%. Alternatively an Abbey monthly saver pays 5% as long as you deposit over £20 a month (7% for the first year if you open the Fixed Rate Monthly Saver). Hope that helps!