Investing my childs inheritance

claudyman

Hi
Apologies if there are similar threads with the same sort of question , I cant seem to find any.

My 7 year old son inherited 50k from his grandma recently and we want to put it away somewhere with no risk until he is 18.

I have looked at the best child savings accounts but most seem to have a fairly low maximum initial amount that I can deposit. Are there any that will allow around 40k deposit to start.
I was thinking of doing the following if I can find an account that will ,

Open a 5 year JISA now (£4368) and another in April (£4368) . This would leave £41264 in the savings account to just open new 5 year JISA's every new tax year year . As they come to the end of the 5 year terms I would just reopen new ones until he is 18.
My question then is weather this is the best way to save the money . I didn't want to find out that there is a way better way with better returns that I am unaware of.
We will have no need to touch the money until he is 18.

Thanks

poppy10_2

With an 11 year investment horizon you should be looking at investing at least part of it in shares. Cash interest rates will barely keep up with inflation.

claudyman

Thanks Poppy10

I will contact one of the JISA companies for advise on that.

xylophone

https://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa

https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html

https://www.gov.uk/junior-individual-savings-accounts



It might be worth considering opening an investment account in Bare Trust as here for example.

https://www.hl.co.uk/investment-services/investing-for-children/junior-investment-account

Some reading

https://monevator.com/low-cost-index-trackers/

Below is an account outside JISA which might be worth consideration.

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

pip895

I also think you should be investing the money. He may gain access to the money at 18 but he is unlikely to actually need it until he wants to purchase a property most likely in his mid to late twenties. I would be investing it all and just making sure to transfer some to cash in the last few years so that he has a few thousand, to fund a car or gap year etc at ~18.

A JISA isn't that much help as without other income he probably wont be paying tax anyway + more significantly you can only put £4368/annum in it. Not saying don't do that but its not really a solution.

PENO1961

My daughters are being left about £50k each one is 19 and one is 15. I need to know what do with the younger one as although the older one can have her money straight away the younger one needs to be invested

KeepOnKnitting

It doesn't need to be invested if she will access and use it at 18. If she wants to lock it away for 10+ years, then it is sensible to invest, but if she will want access at 18 it should just be in a high-interest cash account.

Albermarle

just be in a high-interest cash account

No such thing nowadays !

ratechaser

Albermarle said:

just be in a high-interest cash account

No such thing nowadays !

Well 9k in NS&I @ 3.25%, 2k in Santander @ 3%, 3k in HSBC @ 2.5% etc... plus a few regular savers, all the way down to maybe the 1.66% Saffron 2 year bond? Ignoring Virgin as I believe that only works until age 16...

May not be spectacular, but imagine you could average around 2.5% across the 50k with a bit of effort. Better than adults can get!