University Savings

ScOObyDooD_2

Hi there,

My 20 year old daughter will be starting University in September this year and on her birthday I would like to give her a "nest egg" of £4 - 5,000 for her to invest towards the deposit of a house after she has graduated from her degree (4 yrs) She will probably work part time earing under £100 per week. She is eligable for a full grant & student loan. I do not want the gift to jepordise her loan etc and give her maximum benefit. Any ideas? I am a savings newbie and only recently have been able to afford to save myself (CSA had it all before). So I need some expert guidance.
Thanks in advance.

Katgoddess

If you don't want your daughter to touch the money until she graduates then it sounds like you need an ISA. You can put 3000 pounds a year in with tax free interest.

This article should help you:

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1077487692,12362,

You have until April 5th(?) to put the money in her name for this year. Then you can put another 3 grand in on April 6th.

Or if you want to wait until her birthday, the extra couple of grand you could save in a high interest savings account until the next tax year.

Also...I have no idea about your family situation, but you might want to be a bit discreet about the money with regards to your daughters mother. It might be seen as a bribe.

I don't think the savings will effect your daughters grants, but you can talk to the people on the Students board about that.

ScOObyDooD_2

Thanks, I appreciate your help