Low Risk Savings - Best Vehicle

akadessie

Hi, I have about £12K to invest on behalf of my teenage son (17); we want to put it towards a house (potentially) in 5/10 years time but I don't want to invest in a LISA in case his plans change (as I understand that withdrawing to spend on something other than a house would incur a 25% charge). Is the best bet a savings account? Best I can see is 1.3% which is a bit sad. I don't want to go down the stocks and shares ISA route as I'm not prepared to risk losing money over the course of the ISA. TIA!

Sailtheworld

If you've decided on cash (because any loss is unacceptable) then you're looking at chasing interest rates to try and preserve (as much as possible) the real value of the £12k. I can't see it makes much in the way of difference if that cash was in a savings account or ISA. Perhaps a notice account would reduce the risk of it being spent on fast cars & women with the rest being wasted.

george4064

I would suggest considering long-term fixed accounts, you can find more info here: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#fixedsavings