Please help !

[Deleted User]

My dad has given me £6000 to invest for my daughter who is 14. I dont fancy shares etc cos its so volatile atm.

Any thoughts as to what I can do with this money?

many thanks :beer:

TDPIX

I assume the money won't be needed for a few years?

Have you considered a fixed-rate account? Perhaps a 3 or 5 year term (where you should be able to get over 4% interest)

It's low risk but on most accounts you won't be able to touch the money until the term expires.

[Deleted User]

Thanks so much for your reply! very prompt!

I have thought about that but wondered whether rates would shoot up in the next few years and I'd be left holding the baby as it were ;-)

MoneySaverLog

Deleted_User wrote: »

I have thought about that but wondered whether rates would shoot up in the next few years and I'd be left holding the baby as it were ;-)

I would not be wanting to fix a rate on savings for more than a year, may be two at the most for that reason.

[Deleted User]

Ah ok, thanks. So would you have any suggestions as to what I can do with the money ( other than give it to you of course!) :j

MoneySaverLog

For safety of original deposit, I'd look at the 1 and 2 year fixed rate savings accounts and review at maturity. Rates have already started to drop further, at Lloyds TSB for example just this month their 2 year fixed rate ISA dropped from 3.7% to 3.2%. Fixing short term may seem to be the answer, as I suspect rates will rise over next 5 years (just my thoughts).

If you can tie the money up for longer term say 10 years then perhaps a index fund, rather than individual shares, might be worth looking into. But you are risking the capital for the potential of a greater return linked to the stock market over time.

Over time the stock market has out performed cash savings, but past performance is no guarantee of future performance is what they say.

opinions4u

Junior ISA. Halifax pay 6% on £3,600 if you have / open a cash ISA for yourself.

[Deleted User]

Ok that all makes sense. I read about kids' cash isas but MSE doesnt rate them that highly.

MoneySaverLog

The other advantages to the Junior ISA is that Junior will not be able to withdraw the money until they are 18, at which point the junior ISA becomes a adult ISA and all the allowances saved during that time will be free of tax whilst they become tax payers of the future.

[Deleted User]

Ok so you are pretty +ve about the junior isa??

MSE seems to think its useful for rich people ( and I sure aint one of those!) but the downside IS that the kid can get its hand on the money at 18 ( too early!??) :cool:

MoneySaverLog

Hopefully she'll want to continue saving, but agree it is a risk. The only other option is to open an account in your name and not tell her and then gift her the money later on when you feel ready.