what should mydaughter do with her money

andjam1

hi my daughter is about to turn 18 she has £1,700 in an nationwide smart account from her grandparents she is getting 300 to spend but have told her she has to invest the rest for at least 3 years what is the best way to do this so she gets the most from it. any advice would be helpful.

sciencegeek

how about using some to go on a interview skills course or training course of some kind.
Seems like you are not 'getting' anything (in terms of interest) for your money but if it helps her get a slightly better job then she will be on that higher income point for many years hopefully which would more than out weigh any returns from bank accounts etc.

example - invest 1400, get 5% after tax = 1470
if she earns 12 p/month more in a better job she has doubled her 'return'

just an idea. Good luck.

HappyMJ

Don't lock it up for the next 3 years. She'll probably need it for living expenses if she goes on to further education. So stick in an instant access savings account paying around 3% earning about £42 per year if left untouched. Fill out a form to get the interest tax free if there is no other income. Use the links above on this site to find the best account.

Lokolo

If she is not working (or partime earning under her personal allowance), and if she is not putting the money into an ISA, she can fill in this form

http://www.hmrc.gov.uk/forms/R85.pdf

As per the poster above, it is to get tax free interest.