Cash/Stocks and Shares ISA for 18 year old

ellavaday

A long-term savings plan for my son has now finished and my son has £10,000 to invest. He would like to buy a car but only when he gets a job and can pay the running costs.
I am looking for an ISA/Savings plan where he can leave about £6k long term and have access to the rest when he needs it.

I would be grateful for suggestions and recommendations.
Thanks

xylophone

As he is under 19, perhaps the Santander 123 mini would still be available to him?

Perhaps put the whole £10,000 in there until he is 19 by which time his plans might be clearer?

Archi_Bald

A 123 Mini will only pay interest on £2K max and other current accounts pay better interest than an adult 123. It might not be possible for an 18 year old to get multiple current accounts though, so may be an adult 123 would be best to try.

kangoora

As he's 18 I'd open a 123 as mentioned but look to open a help to buy ISA later this year. Open it with £1k and drip feed £200/month into it. In 5 years time he may want to be considering a house purchase and a 20% bonus would be very nice.

jimjames

If it's long term money then using a S&S ISA would make sense.

Have a look on https://www.monevator.com for more info and ideas on what to buy but simple fund would be a Vanguard LS one which is a balanced portfolio in one fund.

xylophone

A 123 Mini will only pay interest on £2K max

Thanks - I had forgotten that!

I am still not sure about using the £6000 in a stocks and shares ISA unless he can be absolutely sure that he can set this aside for at least five years and preferably add to it.

He will need to insure the car (expensive for a young driver), and maintain it.

Perhaps he could open a couple of Tesco current accounts with £3000 in each and set up an each to other/other to each SO to meet the deposit requirement?

He could also open a Tesco internet saver for the £4000 and transfer the interest from the two current accounts into it.

Maybe after securing employment he could consider a regular S&S savings plan?