Best Option for 18 year old

Jodie59

My daughter on reaching 18 in October will inherit a sum of money some of which should be invested. She will have enough to contribute the maximum for around 2 years. Working on the presumption that she will someday buy a property but also need a pension, what is the best option:
LISA
H2B
Standard ISA

eskbanker

I'd say the order you have them in is (perhaps inadvertently?) about right!

LISA allows access to the biggest 25% government bonus by virtue of its higher annual contribution limit, and has a larger property value cap than HTB.

HTB is probably still worth opening even just for the interest rather than the bonus.

Assuming by 'standard ISA' you mean 'cash ISA' then these are typically poor value and chances are that taxable accounts will be available that are just as competitive, especially in the regular saver and current account markets: http://www.moneysavingexpert.com/savings/savings-accounts-best-interest
http://www.moneysavingexpert.com/savings/which-saving-account

Alternatively, for longer term money then a S&S ISA would be a suitable wrapper.

Pensions will be worth doing at some point but IMHO it's probably worth waiting until employment, unless the inheritance is big enough to fund short term money, emergency fund savings, property deposit savings, medium to long term investments and a pension?