Advice for young saver

aoifemar10

Hi, would really appreciate some advice, my 13 daughter has a lump sum of money from an inheritance which she can not access until she is 18, I’ve read about isa’s, which to be fair still baffles me slightly, and trust funds but still really don’t know the best place to invest it for her to accumulate the most interest, any advice would be fantastic, thank you so much

Alexland

How big is the lump sum? Is she in touch with her Child Trust Fund account? When is her birthday?

Alex

aoifemar10

It’s between £15000 & £20000 and I have a child trust fund for her, any advice would be great:)

xylophone

still really don’t know the best place to invest it for her to accumulate the most interest,

Do you mean "save" or "invest" (deposit account or stocks and shares)?


It could be possible to make the full "CTF year" contribution to the CTF, transfer the CTF to JISA and make the full contribution for this tax year to the JISA - this would use a little under £9000 of the inheritance.


See here

https://www.moneymarketing.co.uk/issues/1-february-2018/41-technical-area-tax-tricks-kids/

The highest interest for cash JISA is currently from Coventry BS.
https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html

You might wish to consider the Nationwide Future Saver for another £5000, particularly if you have (or are prepared to open) an account of your own.

https://www.nationwide.co.uk/products/savings/future-saver/features-and-benefits

Santander mini in Trust would take £2000 .

https://www.santander.co.uk/personal/current-accounts/123-mini-current-account

Funds could be transferred from these accounts to the JISA over the next few tax years.

aoifemar10

Thank you so much, after reading all of that I’m not sure now wether to transfer her CTF into a JISA, I think I’ll also pop in to my local nationwide as that was the one I originally thought of, I just want to save it for her really but not lose any interest benefits if we decide to increase it