Long term savings for children / grandchildren

Vermaport

I would like to open a savings account for a newly born grandchild, which is held in Trust until they are, ideally 21, or at least 18 years old. I want to deposit £30-35k. Any ideas?

xylophone

If this is intended as a specific gift to the child, in bare trust, he will have the absolute right to access and control at the age of 18.

Have the parents opened a Junior ISA for the child?

If not, they might do so and you could give the maximum for the current tax year (£4,368) and then another £9000 on 6 April.
https://www.gov.uk/junior-individual-savings-accounts
https://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa

https://uk.virginmoney.com/savings/products/virgin_young_saver_issue_6 might be suitable for the balance - it can gradually be moved into JISA from April 2021.

Vermaport

Yes it is intended to be a straight gift to a grandchild, which we hoped would be done in trust, with the trustees not including the parents, to help them avoid being tempted to dip in to the funds. The parents in turn are planning to open a Junior ISA themselves for the same child.

xylophone

which we hoped would be done in trust, with the trustees not including the parents, to help them avoid being tempted to dip in to the funds. The parents in turn are planning to open a Junior ISA themselves for the same child.

Well they might be tempted to dip into a JISA but they won't be able to do it - the funds are  available only to the child when he reaches the age of 18.

As grandparents, you can look at opening a stocks and shares account in bare trust for your grandchild - examples 

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

https://www.youinvest.co.uk/investing-for-children/dealing-accounts-for-children

https://monevator.com/hsbc-world-index-portfolio-fund-of-funds/

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

Or a savings account - example

https://www.bathbuildingsociety.co.uk/savings/personal-savings-and-investments/Junior%20Saver

Notepad_Phil

Vermaport said:

I would like to open a savings account for a newly born grandchild, which is held in Trust until they are, ideally 21, or at least 18 years old. I want to deposit £30-35k. Any ideas?

And will you want to do this for any future grandchildren, and if you do, then are you sure that you'll have enough money to put that sum aside for them all?

Depending on your answer then it might be easiest to keep the money in your name in a separate savings or investment account that you can then add to as more grandchildren come along, and start to divide out the money as they start getting to 18 - and of course add your wishes to your will.

This is what we'll do when our grandchildren start arriving.