short term investment - £20K

Cragdoo71

My father in law has told us he has £20k for 18 year old son, but doesn't want to give it to my son just now, he's looking for suggestions as to what to do with the money until my son turns 21.

I said we could put it into our savings account, and when he turns 21 hand over the money. Just wondering if there are any better short term investments we should be considering. The father in law wants the money to be available should he need it, so doesn't want it in something like a LISA or the likes.

Any suggestions?

RacingDriver

Investing over the short term is high risk and more like gambling.

You could look at Premium Bonds or fixed rate savings accounts.

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

colsten

Cragdoo71 said:

 The father in law wants the money to be available should he need it

He who? Your son or your FIL?

Stubod

..no such thing as a "safe" short term investment..better to go with premium bonds IMHO..

Albermarle

Or a three year fixed rate savings account would pay marginally more than Premium Bonds ( assuming you have average luck )

Best 3 Year Fixed Rate Bonds Up to 1.31% Fixed | moneyfacts.co.uk

Although you may not have heard of some of the savings institutions, every one on this comparison site is covered for the usual £85 K compensation cover .

brasso

The answer to most questions in this world is "it depends". If your FIL simply wants to preserve capital (give or take the risk of the odd inflationary nibble) then a savings account is probably the best option. If he's keen for the sum to grow, and is willing to take a little risk. then personally, I would invest it in something like 25% Fundsmith, 25% S&P 500 ETF, 25% SMT, 25% Vanguard Lifestrategy100. Others here will tell you why this is terribly foolish but for a 3 year period, I'd be astonished if the 20K hadn't grown far more than a bank savings account. But as always, there's no guarantee. That general approach suits my risk appetite quite well, but may well not match your FIL's.