Savings idea for daughter

Rich1889

I'm after some savings advice please if anyone has any suggestions.  Some money has been left to my 8 year old daughter from the sale of my late fathers house.  It will be something in the region of £35k.

I'm trying to find a savings option that works for us.  I was looking at putting the money into premium bonds in mine & my wife's names and then transferring it when she is older, but not sure if there is a better option?

If she is ready for that sum of money when she is 18-20 then I'd be happy for her to have it, but if she's not ready at that age the last thing my parents would have wanted is for her to blow it.
I don't really want it to go in a savings account where she gets access at a certain age for this reason. Id like to have control over it to make sure she gets it when when we know its the right time.

Any suggestions would be much appreciated, thank you.

Albermarle

If you do keep it under your control , then due to the long time period involved , you should consider investing it in a Stocks and shares ISA
Normally you would expect it to grow more than it will in a savings account or premium bonds .
If you are a nervous /unsure investor then invest half and put the other half in premium bonds . In any case you have a choice of investments from lower to higher risk anyway.

xylophone

Was the money  an absolute  bequest to your daughter without contingency?

jimjames

I'd echo the previous comment about investing. If you pay it into a savings account then it will lose value compared to inflation every year. Even the best rates are under 1% so long term you should beat inflation with investments such as an index tracker fund. You don't need to buy individual shares. If you want to know more then have a look at monevator.com but by all means come back with any other questions

Rich1889

xylophone said:

Was the money  an absolute  bequest to your daughter without contingency?

It was split between my siblings and my nephew. My daughter wasn't officially included in the will as it was written before she was born, however a family decision was made to include her in the split of money when the house sold.

Rich1889

jimjames said:

I'd echo the previous comment about investing. If you pay it into a savings account then it will lose value compared to inflation every year. Even the best rates are under 1% so long term you should beat inflation with investments such as an index tracker fund. You don't need to buy individual shares. If you want to know more then have a look at monevator.com but by all means come back with any other questions

This great thanks, I'll check it out tomorrow

stephenadarglas

I personally invest for my grandson in an L&G tracker through HL.  He's nine.  It's the  Legal & General International Index Trust (C) (Acc).  Fees of 0.08% plus the platform fee of 0.45%.  A world tracker that excludes the UK.  I drip feed monthly as a precaution from falls in the market.  The rest of the lump sum is in premium bonds which I sell when needed.

AnotherJoe

My grandkids all have JISAs with investments, as its for 15+ years. Savings is a poor idea for 10 years plus, investments, unless spectacularly badly chosen, are almost certain to considerably outperform savings especially at the moment

You could put some amount (maybe 5-10%?) in a kids savings account which will pay a higher rate and then she can use that for treats, school trips or whatever over the next few years and also help her learn about saving.