Child savings / investment

Brushman

Hi, my daughter (8) has recently received a modest inheritance gift of £2k. I'm looking at options for putting it away on a probably non-isa route in somewhere other than her existing TSB childs account. I'm seeing all the attractive 4-4.5% options for accounts based on staged payments of £100 annually and then transferring back to 1-2% offerings. Now, I know I COULD put it into a current account, set up 2 x standing orders into two different savings accounts and gain back theoretically £108 a year, reinvested and so on (with bank of dad chipping in the initial £400 difference)... but 1) it's still attached to me (assumes I'm unlikely to find a current account for an 8yr old) and 2) that's a right faff year on year.


Anyone have any better suggestions?

eskbanker

Why are you ruling out ISAs?

https://www.moneysavingexpert.com/savings/junior-isa/ lists a 3.6% account that doesn't have a 12-month term, and there is an argument that investing (via an S&S JISA) rather than saving might be worth considering for the ten years until she'd have access....

Brushman

eskbanker wrote: »

Why are you ruling out ISAs?

[link not allowed!] lists a 3.6% account that doesn't have a 12-month term, and there is an argument that investing (via an S&S JISA) rather than saving might be worth considering for the ten years until she'd have access....

I think originally I was concerned about locking away and the whole '18 and in party mode' issue.... but you've prompted me to maybe think again.

Keep_pedalling

Brushman wrote: »

I think originally I was concerned about locking away and the whole '18 and in party mode' issue.... but you've prompted me to maybe think again.

You do need to think again, this is her inheritance and she is entitled to full access when she reaches 18 (16 if you are in Scotland)

xylophone

Does your child have a JISA?

If so, this seems an excellent account in which to hold her inheritance, assuming that only up to £2368 has already been contributed in this tax year.