Children's accounts - £2500 to invest

emmainbrighton

My daughter age 10 months has just been given £2500 by her grandmother. I would like to invest this somewhere with a good return and would be happy to lock it into a long term account if necessary. We already pay £20 / month into a Child Trust Fund; maximum per year is £1200 - is that tax year or calendar year? Should we bank the cheque ourselves, put in extra to the CTF up to the £1200 limit over the next 2 years? Or find a decent children's savings account? Or do a bit of both? All suggestions welcome!

cloud_dog

emmainbrighton wrote: »

My daughter age 10 months has just been given £2500 by her grandmother. I would like to invest this somewhere with a good return and would be happy to lock it into a long term account if necessary. We already pay £20 / month into a Child Trust Fund; maximum per year is £1200 - is that tax year or calendar year?

DoB year.

emmainbrighton wrote: »

Should we bank the cheque ourselves, put in extra to the CTF up to the £1200 limit over the next 2 years? Or find a decent children's savings account? Or do a bit of both? All suggestions welcome!

The answers to this bit depend on a lot on your individual situation:

1. Did the grandmother give any specific instructions, e.g. at age 21???
2. What other financial provisions / savings / investments are being made for your child?
3. How do you feel about your child gettign their hands on lots of money at age 18?

You get the gist.

WRT you banking the cheque is it in your name(s). If you are only looking at savings accounts then it really all depends on when you / grandmother want the child to have access to it. With 'normal' savings accounts (as far as I am aware) legally you no longer have guardian control at age 7. Just remember to complete the R85 (unless your child exceeds their income tax limits).

After a long and winding post the simplest thing is 'do a bit of both'; I'm sure the grandmother would want your daughter to have some enjoyment from the money before 18.

cloud_dog

ses6jwg

Thanks for pointing out that guaranteed reserve from Halifax.

Currently have £1000 sat in a Natwest child saver earning a pittence (around 0.8%).

Are you allowed to make additional deposits on that Halifax account?

edit: just saw "no additional deposits" - look with your eyes!