Best way to give money to a baby

jaxs

Hi all

My niece has recently had a baby & her & her hubby have everything they currently need for the little one.

I was thinking that instead of buying the baby a present at Christmas I'd like to give them some money to either use when baby needed something or just add to it & let it grow but I don't know the best way to do it.

I could obviously just give them cash but I wondered if it would be better to open an account for baby (if I could do that) or if there were any other ways/suggestions people had.

Thank you
Jaxs

atush

IF the is a one off gift, I'd give them a cheque along with an application for a Junior ISA.

If you want to add to it yearly or on bdays/xmas, then you could open an acct as a bare trustee (ie in your name re: the child's name), But for the interest to be paid gross, you need to get the parents to sign a form.

As it is a baby, I would invest in equities over cash as they will be more likely to grow more and to beat inflation by a larger margin over periods of 10 years or more.

xylophone

Investment trust in bare trust might be suitable?
Example here http://www.fandc.com/new/IT/Default.aspx?id=78401

jaxs

Thanks Xylophone & Atush. I will have a look through these options