Saving for a grandchild abroad

New_Granny

Hi, I'm a new poster and new to the whole concept of active saving/investment as well as being a new granny!

My new grandson lives in NZ and I would like to put a monthly sum away in his name to fund a gap year in the UK or whatever. Does the fact that he isn't a UK resident make any difference to my options?

I'd rather not mess about moving accounts every year if I can avoid it. Can I open a sort of pension fund for an expatriate child? I am confident I can commit to a modest monthly sum in the long term. If I could also add a bit extra occasionally that would be a bonus, but not essential.

Any suggestions (put simply please!!) would be much appreciated.

Reaper

I think you will find it difficult to open a UK account in his name. You will have to enquire as to whether NZ has the equivilent of a Child Trust Fund that you could contribute to.

Alternatively do it in your own name then gift it later. The disadvantage of that is you will pay any taxes on it at your current rate, rather than the child's.

As it is a long term thing and you don't want to keep monitoring savings account interest rates I would suggest you think about a regular premium into an investment fund instead. You would want one or more very diversified worldwide ones if you are not interested in switching as the ecomomy changes. Perhaps a "Fund of Funds" would be the thing as they do make the switching decisons for you - though note the charges are a little higher on those. It you don't already contribute to a stocks and shares ISA you could use one to avoid the tax.