Best place for childrens savings

dingo

My sons, 14 and 11, have £3000 to invest at least until they are 18. What is the best way to invest? Is an ISA the best vehicle or some other fixed rate bond?

I don't want anything that's too complicated to understand or administer!!

thanks in advance.

lipidicman

They cant have ISAs.

The interest will be tax free UNLESS YOU GAVE THEM THE MONEY. In which case it will be taxed as your income (this closed a loophole whereby parents put money in the childs name) if the interest is above £100 (so if each parent gave half the amount you should be ok)

You could go for high interest childrens accounts but I am no expert. If the period is long enough you could invest the money - but here I wont give any specific advice (my crystal ball is playing up this week!)

dingo

Thanks for that.