Kids have received a large gift. whats the best way to save it?

Meganlollyfox

My kids have received £16000 from their grandparents, I dont know where to save it.  The children are British but do not live in the UK, the grandparents do.  The money does not need to be used for at least 4 years.  What is the best way to save this?  Would opening a joint acc with a grandparent be suitable?  Any advise appreciated.

xylophone

Have the children never lived in the UK?
How have the children received it? Do you mean that the grandparents have given you the money?
Do you mean that each child has received £16000?

Meganlollyfox

One child was born and lived in UK - one child not, both are British.  The money is yet to be transferred into wherever I say!  Yes, its a gift of £16000 per child.

colsten

How old are the kids?
Does either parent live in the UK?
Where/on what are they planning to spend the money in 4-ish years' time?

xylophone

How old are the children?
Does one of them have a CTF/JISA?
If not, rather than transfer the money to you, (and particularly if the children have at least ten years to go before they reach age 18),  the grandparents might like to consider opening an investment account for each child in bare trust - a global multi asset fund might prove suitable.
Examples
https://www.youinvest.co.uk/investing-for-children/dealing-accounts-for-children
https://www.hl.co.uk/investment-services/investing-for-children/junior-investment-account
https://monevator.com/vanguard-lifestrategy/
https://monevator.com/low-cost-index-trackers/

Meganlollyfox

They are almost 15 and almost 12.  The eldest does have the CTF unused other than the initial payout at birth in 2005. The intended use is further education most likely within the EU, we currently live in the EU, grandparents are in the UK.
Thank you for the links - I will take a look. 

colsten

For 4-5 years, I wouldn't gamble with investments. I'd instead stick with savings accounts. Your / your parent's risk appetite may be higher than mine.

The best interest rates are in kid's ISAs but as your kids aren't UK residents, that would be tricky. You'd also need to check what the taxation rules are that apply in your country of residence.

If you / your kids want to use the money outside the UK, you'll also have to consider the exchange rate and take a stab at whether to move the money all at once now or later, or in smaller amounts over a period of time.

xylophone

With this short time frame, probably better to stick with cash.
The grandparents are unlikely to be permitted to open an account in the name of non-resident children.
If the grandparents remit the £32,000 to you, presumably you could open savings accounts for them in your country of residence?
Another solution could be possible for the child with the CTF - do you know where it is held at the moment?

Meganlollyfox

The CTF is with Norwich or Ipswich BS - I need to find the papers.  If the money comes via me then it will have tax issues so Im looking for accounts to open directly for the children.  Yes, I could open Euro accounts, Im looking into this too.  I could do with a currency exchange-rate crystal ball!!!

DiggerUK

Interest rates are awful, best consider premium bonds. Will get between 0% and a million..._

xylophone

If a child has  a CTF or JISA, it is possible to continue to contribute after the child moves abroad, if the provider agrees.
For example, see this FAQ from Triodos bank. https://www.triodos.co.uk/help/search?q=junior+isa

It may be possible to contribute to the CTF in the CTF year, transfer the CTF to JISA, make the full JISA contribution for the current tax year, and then continue to contribute in the following tax year. See post 3/10/17 here
https://forums.moneysavingexpert.com/discussion/5735419/child-trust-fund-child-no-longer-resident-in-uk
The best rate on a cash JISA is currently offered by the Coventry BS - if they would accept a transfer in of the CTF to their JISA, it might be worth your consideration to do as above - the bulk of the gift to the older child could be in the JISA by mid April with the balance contributed the following year.
https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html
I assume that you will check on tax implications in your country of residence  - tax privileged here does not necessarily mean tax privileged abroad.
https://www.gov.uk/child-trust-funds
https://www.gov.uk/junior-individual-savings-accounts