Investing inheritence for my daughters

Martin_Davis_2

We have received £4500 for each of my daughters and want to know what is the best way to invest/ save. We don't want access until they are 18. (They are 8 and 5) What is the best way? Should we invest or save in a tax free account? I would be grateful for any advice.
Thank you
Martin

Jake'sGran

At their ages they cannot have bank/BS accounts in their own names. I opened accounts for my grandsons but their Dad's name was also on the documentation. The interest was poor then even though it was a few years ago. Some BSs do have accounts especially for children so you could try Googling for their rates.

Some fund manager's have investments for children too. Have a look at Fidelity, M&G etc. If you take this route you need to choose the fund with care or they may have funds designed just for children. Finally, have a word with Hargreaves Lansdown as they discount (usually) all of the upfront charge.

jamesd

If you don't mind using your own allowance and name a stocks and shares ISA would be the way to go. You'd pick fuinds that you think are suitable or ask for suggestions for some that you think might be suitable. Something like Aberdeen Emerging Markets and Invesco Perpetual Income would be a not unreasonable mixture for that term, though you'd want to cut the proportion in the former gradually a few years before they might want the money. Note that up and down capital value changes in the 70% and 40% ranges can be expected for those funds, respectively and don't use them, or add more to the mixture, if you can't handle that degree of volatility.