who would give me the highest interest on 5k for my daughter

Sashcroft_2

Since my daughter was born, I have saved her childrens allowance in her own account at the Abbey. Now she has over £5k, and Id like to put a lump sum in a higher paying account for her - which she wont have access to for another 14 years.

I know all about ISA's - but I really dont want anything with any risk involved - and my parents have lost quite at bit on ISA's over the last couple of years

I would appreciate any suggestions

Thanks
Stephanie

tom188

I know all about ISA's - but I really dont want anything with any risk involved - and my parents have lost quite at bit on ISA's over the last couple of years

A child cannot hold an ISA, and your parents have not lost quite a bit on ISAs over the last couple of years, it is just that the funds that they invest in within the ISA have done badly.

I suggest you read the savings for kids articles on this site first.

dancingfairy

I think you may be confused about ISA's Stephanie -an ISA is basically a tax free wrapper -this can be used to protect cash or shares from tax. If your parents had invested in a cash ISA they would not have lost money as it is guaranteed and they would have earned some interest, on the other hand if they had invested in shares with the ISA tax wrapper then if the shares have performed badly then they will have lost money. In summary ISA's are just a wrapper and it's what's underneath that determines whether you lose money or not. Hope this helps clear up some confusion for you.