Saving for my Grandchildren

r1dgeback

Hi


We have 4 Grandchildren and would like to give them a lump sum of cash when they reach 18yrs old. Quite happy to setup a DD monthly into a savings A/c but which one? would we have to specify which child.


Look forward to your replies

Declan1992

Premium bonds are always worth a punt

Alice_Holt

How old are the grandchildren now?

Would an S & S JISA be appropriate?
https://www.telegraph.co.uk/money/special-reports/set-best-isa-child-grandchild/

If savings, best rates here:
https://www.moneysavingexpert.com/savings/child-savings-tax-free/

Cash JISA's
https://www.moneysavingexpert.com/savings/junior-isa/

General info on JISA's
https://www.moneyadviceservice.org.uk/en/articles/junior-isas
"Money in the account belongs to the child, but they can’t withdraw it until they turn 18, apart from in exceptional circumstances. They can, however, start managing their account on their own from age 16."

Notepad_Phil

We're not at the grandparent stage yet but when we are we'll start to put a monthly sum of money away for them in savings and investments - hopefully increasing the monthly sum as each grandchild arrives.

Initially we'll put the money into investments (as they'll have a lot of years before they'll need access) and only when they get to their teens will the monthly sums start to be put into savings and the investments start to be moved into cash as it becomes closer to when it will be needed.

We'll also keep the investments and savings in ISA's in our name rather than in theirs. This will allow us to divide out and pass over the money when we feel it is best and also as we don't know how many grandchildren in total there will be or how the investments will rise and fall over time it would be unfair if some get less than others.

Hopefully it won't be needed but we will put the necessary details into a Will just in case.

Alice_Holt

Notepad_Phil wrote: »

Initially we'll put the money into investments (as they'll have a lot of years before they'll need access) and only when they get to their teens will the monthly sums start to be put into savings and the investments start to be moved into cash as it becomes closer to when it will be needed.

Yes, I did similar for my nieces. Monthly savings in a global investment trust via a bare trust (pre JISA), for the first 13 years. Then switched savings into a child's savings account, to give them a cash sum at 18.
The IT's did extremely well over this time period, and both nieces (thankfully) have been sensible with their capital. One will be using the funds to help with a house purchase.

I am continuing to save for them (and thus reduce my IHT), but this is now directed into a SIPP for them. Some of this is held in Vanguard LS, some in adventurous growth ITs.

I've had the benefit of a degree grant and a final salary pension, unlike my nieces.