Teenager with £30k to invest over 2 years

Lokolo

BTW FYI you cannot invest until you are 18.

You can save though.

Or you can ask your parents to open an account in their name, but then the money will be taxed on their tax position and not yours.

furbix

Highest rates at the moment are on aud denominated accounts but the exchange rates you get from the banks that operate these are atrocious .

System

Lokolo wrote: »

Or you can ask your parents to open an account in their name, but then the money will be taxed on their tax position and not yours.

Not true. Children receive a tax allowance exactly like adults.
See:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/DG_10014128

Lokolo

Clifford_Pope wrote: »

Not true. Children receive a tax allowance exactly like adults.
See:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/DG_10014128

It depends where the money came from. If from parents, then no they don't. But this is in terms of savings.

And at the point I said, you can ask parents to open an account in their name, I was talking about investing, which the OP cannot do until they are 18, hence, the parents suggestion.

ESKIMO

£30k Obvious suggestion. PREMIUM BONDS.

You could put the max of £30k in and sit on it for 2 years in the knowledge that (on average statistically returns are 4-6%).

YOu also have safe knowledge that you WILL NOT LOSE ANY CAPITAL WHATSOEVER. - Although you do have to compare your capital to (what you could get if you put it into a savings account, but then again @ 2-3% why bother?)

Winnings range from a 'measly' £5 to a cart-wheeling cool £1m!

Oh yes, and best of all THERE IS NO TAX TO PAY ON YOUR WINNINGS! 'Cushty' or what!

Normally you can expect to win several times a year. Relatively on a frequent and regular basis.

Certainly something worth considering either way.

Hope this helps.

Regards.

vaporate

private education, parental handouts.

and ppl call benefit claimers 'scroungers' lmao.

le_loup

ESKIMO wrote: »

£30k Obvious suggestion. PREMIUM BONDS.

Statistically, returns are 1.5%.
Capital will be eroded by inflation.

So not a good idea at all.

Sparky29

ESKIMO wrote: »

You could put the max of £30k in and sit on it for 2 years in the knowledge that (on average statistically returns are 4-6%).

This is wrong.
You’re likely to win even less than the interest rate.


The value of prizes paid out is determined by an interest rate, which is currently 1.5%, though it changes, usually following a change in Bank of England UK rates. (Quoted from link below from this site)

http://www.moneysavingexpert.com/savings/premium-bonds

You could get lucky and win more. But you could win nothing!!

HappyMJ

le_loup wrote: »

Statistically, returns are 1.5%.
Capital will be eroded by inflation.

So not a good idea at all.

I agree. They may be a good "bet" for a higher rate taxpayer but I don't think the OP would be paying tax anyway so not worth it.

Procrastinator333

vaporate wrote: »

private education, parental handouts.

and ppl call benefit claimers 'scroungers' lmao.

Jealousy is a terrible thing.

If you had enough cash you wouldn't look after your family?

From the snippets available here, it sounds like this 15 year old is being pretty mature about everything. Making a decision to stop private school. Having £30k and not blowing a few £k of it first. Setting it aside for higher education.


Anway, back to the OP. Where to put the money? Imo, spread it in the best savings accounts you can find. Take a few % per year. £30k at uni, you will have a blast, no debt and probably some change left over to start life post uni. Good for you. Don't risk that.