Any suggestions on how to best invest financial gift to child

musey

hi

I wonder if I could get some suggestions from the good folk in this board. my father in law has decided to gift £6k to my daughter. she is 13 and a sensible lass who likes having savings and seeing them grow.  Are there any products or accounts that people could suggest I look at to best maximise this gift?

She has a jisa that we opened 2 years ago for her, we transferred her CTF into it when we opened it.

I'm in the process of moving the jisa from Halifax to NS&I as the interest rate is better.

 

I have been doing some reading but could do with a few pointers in some suggested directions. 

Apologies for reposting, I realised I posted in the wrong forum last night 

xylophone

If you wish to remain in cash, then it is simply a matter of choosing the JISA with the highest rate of interest which is what you have done.

Are you indicating that you would wish to hold a stocks and shares element within the JISA?

musey

I'm not wedded to it staying as cash and did wonder about putting the gift into a stocks and shares isa

Albermarle

musey said:

I'm not wedded to it staying as cash and did wonder about putting the gift into a stocks and shares isa

In which case you will have to pick the investments within the ISA . Some only have a small choice and some a lot.

xylophone

https://www.gov.uk/junior-individual-savings-accounts

How Junior ISAs work

There are 2 types of Junior ISA:

• a cash Junior ISA, for example you will not pay tax on interest on the cash you save
• a stocks and shares Junior ISA, for example your cash is invested and you will not pay tax on any capital growth or dividends you receive

Your child can have one or both types of Junior ISA.

How much of your daughter's £9000 maximum contribution has been used in this tax year?

Let's suppose that £3000 has already been contributed.

You might decide to use a stocks and shares JISA for the £6000.

https://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa

Other posters have mentioned Fidelity favourably or you might look at Vanguard?

https://monevator.com/low-cost-index-trackers/ Might be worth a read.