Investing for grandchild

puppey

Don't think gold is the right thing in this case. The compounding interest in a bank over 10 years starts to add up.

Pia_Petersson

I think its good to start saving for your grandchild, this will really help to secure your child,s future. Keep in mind to invest asset in right and fruitful way.

Totton

Many IT plans have £100 as the minimum lump sum investment.

That's not really the case to be fair, many are much less than that, I would split the £200 into smaller monthly sums and consider an Investment Trust savings scheme such as Caledonia which starts at £10 per month. http://www.caledonia.com/our-business/invest-in-caledonia

Foreign & Colonial also did a good scheme the last time I looked, you were also able to change the related IT during the scheme so if you fancied moving to one of their other trusts then that was no problem, I don't know if that is still the case but easy to find out.

Further info. at http://www.theaic.co.uk

jimjames

Totton wrote: »

That's not really the case to be fair, many are much less than that, I would split the £200 into smaller monthly sums and consider an Investment Trust savings scheme such as Caledonia which starts at £10 per month. http://www.caledonia.com/our-business/invest-in-caledonia

Foreign & Colonial also did a good scheme the last time I looked, you were also able to change the related IT during the scheme so if you fancied moving to one of their other trusts then that was no problem, I don't know if that is still the case but easy to find out.

Further info. at http://www.theaic.co.uk

I'm a great supporter of investment trusts and wasn't aware of companies that do lump sum investments below £100. I know you can do direct debits for less than that as I do myself. I was trying to point out to the negative, gold ramping previous post that investment is a viable option for £100 per year.

However F&C Children's investment plan is certainly not suitable as an option for smaller sums as their charges are a fixed amount not percentage so are extremely high as a percentage.

The annual fee of £24 is bad enough but putting in a lump sum of £100 you'd lose £12 to commission with their new charging structure so completely unviable for this kind of amount.

Aberdeen still offer a competitive plan with no holding fees and only tiny % for dealing as well as 0.5% stamp duty.