Savings for children that are NOT my own

Schnaz

I have recently become a godfather and would like to start putting money away for the youngsters to help them perhaps when they're 18/21.
What is the best way to do this as the children are not my own?
Ideally it would be in their own names too.

I'd be grateful for any suggestions.

Thanks!

Albermarle

Children's saving and investment accounts are the best bet but they can only be opened by the parents/guardians. Also the children will get full access at 18.

Alternatively just open accounts in your name and give them the money at some point in future. Due to the timescale it would make sense to invest the money via a Stocks and shares ISA rather than a savings account ( whether in your or their name)

Iain_For

You can set up a junior investment account as a Bare trust. AJ Bell do them and HL did, but currently not available. The children would gain access to the accounts at 18 or 16 in Scotland. Potentially more tax efficient than an ordinary (non-ISA) investment account in your name as can make use of the child’s tax allowance. 

cloud_dog

Schnaz said:

I have recently become a godfather and would like to start putting money away for the youngsters to help them perhaps when they're 18/21.
What is the best way to do this as the children are not my own?
Ideally it would be in their own names too.

I'd be grateful for any suggestions.

Thanks!

I think an account/investment in your name would be the best option (allows better control; change of bank account etc, allows for flexibility for the possibility of becoming a godparent to another child).

I did something similar for my nieces and nephews (turned out to be 3 nephews), and when the first turned 18 I calculated how much one third was (allowing for ongoing contributions and some growth) and simply gave them the money (along with Lars Kroijar's book ' Investing Demystified'. 😁)