Savings for nephew

saraneary

Hi All, my nephew turns 1 next month and I want to start a savings/investment fund for him to access when he is 21. From research I can see that I am not able to open a junior ISA as I am not a parent or guardian. Also, most stocks and shares ISAs have a minimum contribution of £25pm and I was only budgeting £10. I am currently thinking premium bonds might be my best option, any advice?  Thank you 😊 

AlanP_2

Ask parents toopen JISA and make an annual contribution?

PBs are an option but again £25 minimum.

BTW - He will be able to access at 18 not 21 if it is in his name.

eskbanker

If you're wanting to withhold access until he's 21 then you'd need to keep this in your own name, as he'd have access rights at 16 or 18 if in his.  Premium Bonds are unlikely to be beneficial given the lack of capital growth, which is more of an issue over the long term, so I'd suggest that you open a regular saver account every year, putting the proceeds of £120 plus interest into a S&S ISA on maturity at the end of each year.

cloud_dog

saraneary said:

Hi All, my nephew turns 1 next month and I want to start a savings/investment fund for him to access when he is 21. From research I can see that I am not able to open a junior ISA as I am not a parent or guardian. Also, most stocks and shares ISAs have a minimum contribution of £25pm and I was only budgeting £10. I am currently thinking premium bonds might be my best option, any advice?  Thank you 😊 

You also need to consider how many nieces and nephews you are going to ens up with, as I am sure you would want to treat them all fairly and equitably?

I did this for my nephews and nieces (turns out it was only nephews), and I started a simple regular investment account in my name (I was able to pay the minimum), with the idea that once the first one turned 18 I would identify an amount I could gift whilst ensuring the remaining investments would increase to meet the same amount for the others (as they turned 18). 

If you are unable to spare the monthly investment amount what you could do, is simply set up a regular savings account (in your name), and annually transfer the cash in to a S&S ISA (in your name), make an investment, and continue with the regular saver (rinse and repeat).