Where to invest ?

Ianpoulton

My mum wants to set up two savings accounts for her two great-grandchildren. She wants to put 10k in each account to protect against inflation but wants it in a passive fund  Any ideas ?

Albermarle

Firstly you and she should be clear that there is a difference between a savings account ( 100% safe but with low interest ) and an investment account ( Potential higher growth but with risk attached ) .
Presume she is interested in the latter ? If so you need to say what kind of time scale she is looking at and how 'risk tolerant ' she is .
Just to be clear some  passive funds could drop 40% in a market crash . 

zemarcopolo

There is no account that guarantees protection against inflation. If the intention is to invest,  it is important to be aware that the value can go down or up. 
You can compare interest rates in saving accounts on money.gocompare.com

eskbanker

As well as the above, what are her expectations about timescales?  Junior ISAs (either cash or S&S) may be suitable vehicles for £9K per tax year if the children don't already have them and the parents are happy to open them, but these entail automatic access to the money at 18, which many in your mother's situation seem to have an issue with....

Alice_Holt

Investing in a passive fund is very very different from opening a savings account. 

HSBC All World Index,
or a Vanguard fund - 
might be suitable for a time period of more than 10 years.

Invest on a platform that minimises costs, and in a tax efficient manner (JISA ?) to maximise returns.
 

DireEmblem

Agree this all depends on timescales imo to what you invest in.

For long term, agree with Alice - cheap all world index tracker fund.
https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000TXY8
https://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P0001I3RZ

You then need to consider where and what to hold the funds in, depending on when they want to transfer the funds over to their grandchild to spend.