What to do with Witan jump savings

janec

Hi all
I’ve saved for 16 years in the jump scheme .I wanted to save until my youngest daughter was 18 in April 2020 and my oldest was 21 then . As Witan are closing the scheme and transferring it to another provider I’ve discovered that I would have to manage the shares and stock buying which I don’t want to do .I have been very happy just paying in £40 a month and am frightened that I would muck it up and lose it .Along with the Brexit uncertainty I have cashed them in instead .what would be the best way to invest the money as I wasn’t actually going to tell them about it until the younger one was 21 ?Way back when I started I hoped it would be a deposit on a flat but that was before prices went through the roof ! They have about £20 k between them now .should I buy £5k each in premium bonds as interest rates are so low ? Not sure I want to get them a Lisa as they might prefer to have it for a car/ wedding etc and don’t want them to have less than paid in .I certainly don’t want them to waste it after saving for so long ! Maybe depending on the outcome of Brexit ,possibily try again in an investment fund/ shares with some of it ? Any help and advice would be greatfully received ,thanks

eskbanker

On the basis that that effectively condenses down to "what should I do with £20K that'll be needed in four years' time?", that's too short a period to consider investing (even if you were comfortable going down that route) so you'd be best to keep it in cash form - you can get 2.5% on a four-year fix, as per https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#fixedsavings

Or you could spread the money around a variety of current accounts and regular savers to get a better return on it, see https://www.moneysavingexpert.com/savings/which-saving-account/

xylophone

You have a seventeen year old and a twenty year old.

What are their attitudes to money?

Had you discussed LISA with them (as a future prospect for the 17 year old)?

If the twenty year old were interested, you'd perhaps just have time to organise £4000 in this tax year.

https://www.which.co.uk/money/savings-and-isas/isas/lifetime-isas-ac6mf6s7r9d5