Saving a Lump sum for children

Vonstrompler

I have a lump sum of 20k I wish to invest for my child. I'd like it to be accessible when they reach 18 or 21. Any advice would be great fully received. Thanks.

xylophone

Does your child have a CTF/JISA?

Who is providing the £20,000? Is it a gift from you/your spouse/ somebody else/a bequest?

How old is the child now?

Vonstrompler

Hi, I have an 8 and 11 year old who I am going give 20k each to from the sale of my house following a divorce. They both have a CTF. I have looked at JISA but the amount exceeds the yearly limit and I need it to go in a lump sum.
Thank you

xylophone

You might credit each child's CTF with the maximum for the CTF year, then transfer the CTF to JISA which would permit you to credit the full JISA amount for the current tax year.

See post 3 https://forums.moneysavingexpert.com/discussion/comment/70479762#Comment_70479762

and http://www.moneysupermarket.com/c/news/how-to-transfer-a-ctf-to-a-jisa/0085961/

This would use up £8080 for each child.

You might then open a NationwideSmart Limited Access Account for each child with £11960 in each, aiming to transfer the full JISA amounts to each child in 17-18/18-19/19-20.

Thus is a parental gift to each child so bear in mind the "£100 rule" for interest arising on accounts outside CTF/ JISA.

See https://www.gov.uk/savings-for-children

jimjames

Over that timescale you're probably better looking at investments rather than cash savings - not sure if that was your intention when you posted invest originally.

xylophone

Over that timescale you're probably better looking at investments rather than cash savings - not sure if that was your intention when you posted invest originally.

A stock and shares option is available inside or outside a JISA.