Advice

susieyt67

My dad would like to pay a one off lump sum of £5k into an account for my 14 year old. I had thought ISA but advice would be appreciated He already has an  RBS general savings account, and  N&I savings.
We are based in Scotland - not that it makes any difference but thought it would be useful to know.

Thanks 

Alexland

If this is a gift and he is happy that it will be locked away until the child can access themselves (for whatever they want) from age 18 then you as a parent or guardian can open a Junior ISA with some paying over 3% interest. Any existing Child Trust Fund would need to be transferred-in (ask the JISA provider to do this) as the child cannot hold both accounts. The JISA contribution allowance has increased to £9k pa from next tax year starting 6th April so £5k can be deposited in a single transaction.

https://www.moneysavingexpert.com/savings/junior-isa/