Investing for my grandson

typistretired

I believe a total sum of £5,000 was mentioned, not a savings plan.

atush

Well, the money could be put in an acct and drip fed in over time. IF the OP would be upset if there was a downward movement of the markets just after investment. For those of a nervous disposition, drip feeding does calm the nerves.

But many of the plans allow a lump sum investment instead. If you were making a LS one, I would look for plans that don't have an annual fee that covers buying and selling costs if you don't plan on putting in regular investments on top.

xylophone

I believe a total sum of £5,000 was mentioned, not a savings plan.

Lump sums can be invested - but the OP still needs to understand about bare trust and designation.

phil-maskell

Thanks everyone for all your replies.
My grandson is currently aged 1.
I was looking for the best type of 'investment' to get the best return, surely if I do it then paying tax comes into the equation, and investments can always go down as well as up!
Maybe a JISA is the way forward although the rates are very poor.

xylophone

Maybe a JISA is the way forward although the rates are very poor.

6% on cash JISA from Halifax if parent holds ISA with them. See post 5 above.

phil-maskell

Unfortunately I don't have any ISA's

zaksmum

phil-maskell wrote: »

Unfortunately I don't have any ISA's

Why not open one then?

atush

phil-maskell wrote: »

Thanks everyone for all your replies.
My grandson is currently aged 1.
I was looking for the best type of 'investment' to get the best return, surely if I do it then paying tax comes into the equation, and investments can always go down as well as up!
Maybe a JISA is the way forward although the rates are very poor.

Investments have dividends taxed already. So only capital gains to worry about (and not a worry here for a decade or more) and you can time sales to use CGT allowances. Unless you are a HRtaxpayer.

Second, yes rates are Cr8p in deposit ISAs in the main, but you can have an investment JISA- but the money is theirs at 18.

And if you don't have ISAS yourself, have you got enough cash to be splashing about? Are you a taxpayer? Don't you need to shelter your own cash and investments from t he taxman?

xylophone

Unfortunately I don't have any ISA's

It is the parent or guardian who must hold an ISA with Halifax so that the child becomes entitled to the 6% rate.

https://www.gov.uk/junior-individual-savings-accounts/opening-an-account

MallyGirl

but they only need to open one with £1 to qualify so worth it if they don't already have an ISA