Saving For a new grandchild

scooterdude7

I would like to start saving some money for my new grandchild olly, what would be the best place for my money to go?
If anyone can help I would be very grateful:j

xylophone

Your grandchild is entitled to a JISA but his parents might prefer to keep this for their contributions if they are likely to be gifting him large sums.
You can open a savings account for him with you as trustee (if he is a non- taxpayer, which most children are, don't forget his parents must sign the R85). You are not confined to standard children's accounts, but need to check that the institution accepts "re" accounts.

In view of the fact that you are likely to want to be saving for him until he is 18, you might want to think of saving for him within an investment trust / fund framework?

http://www.hmrc.gov.uk/tdsi/children.htm
https://www.hl.co.uk/free-guides/investing-for-children2
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/ISAsandJuniorISAs/DG_199672
http://www.hmrc.gov.uk/individuals/savings-income.htm
http://www.moneywise.co.uk/investing/investment-trusts/consider-investment-trusts-your-childs-finances
http://www.thisismoney.co.uk/money/saving/article-1604866/Investment-trusts-for-children.html (rather old but worth a look).

atush

I agree, if saving for longer than 10 years don't do it in cash- use an investment trust savings scheme.

martinman3

The OP doesn't mention the sums involved but to give some idea of how affordable children's investment trust savings plans can be, the minimum monthly S.O. sum is around £25 or a lump sum (which can be invested whenever you wish) is around £100. These minimums are lower than the equivalent adult savings plans.

usignuolo

I should like to save for my grandchild too but she is overseas as her parents are living abroad at present. Does this restrict my options?

atush

yes in that she can't have a JISA. but you can still do a RE:acct, and you can also do Investment trusts which start from as little as 20 per month.

xylophone

usignuolo wrote: »

I should like to save for my grandchild too but she is overseas as her parents are living abroad at present. Does this restrict my options?

https://forums.moneysavingexpert.com/discussion/3828175 might be of interest.