Best long term savings?

Primrose

Many trust funds accounts insist on the money being handed over at 18 which is not what you want. However, National Savings & Investments offer a Trust Fund that can continue until the recipients are 21, but the interest rate is not great. You'd probably do better going for a fixed term account in your own name but that would be taxable whereas the NS & I won't be as I imagine any interest would be below any personal allowance levels available to your children.

stogiebear

Do you and your kids a favour and put the 20K in a five year fixed rate bond at The Halifax. Right now the interest is a pretty good 4.3% fixed for the five years so you can sit on your rump and forget about it.

Primrose

But can the bond be put in the names of the under-age children as joint holders in a way that they can receive interest without paying tax? If not, it's a less profitable investment.

madra

Can I thank you all for your 'good' advice, even if some of it was a tad confusing!! I particularly liked the NS&I index-linked savings so I'll pursue that and maybe the idea of placing the money in a savings account 'in-trust' Once again, thank you for taking the time out to respond to my question.