Lump sum savings 18 January at 3:31PM in Savings & investments 20 replies 1.5K views

55sarah55

Hi,

My children and I have recieved some inheritance. I want to choose the right savings for my kids. I wanted to place it all in the account at once without having to pay into an account that has a maximum monthly limit. Does such a thing exist?
Thanks

eskbanker

It's only regular saver accounts that have a monthly limit, most savings products don't.  How much are you talking about, and how old are the children?

Albermarle

If your children are not very old ( not teenagers anyway) it would be worth considering, investing the money, as long term this should give a better return than a savings account.

Info on Children's saving accounts here.
Top children's savings accounts: 5% interest - MoneySavingExpert
You can also save or invest via a Junior cash ISA, or a Junior stocks and shares ISA

Top junior ISAs: 3.8% children's ISA tax free - MSE (moneysavingexpert.com)

diystarter7

Hi  OP

The above is good

We are condieirng giving large amounts to grandkids and recently read this

https://www.unbiased.co.uk/discover/personal-finance/savings-investing/investing-a-lump-sum-for-a-child-what-are-the-options

We've not acted as yet as we are thinking about the amoutns and are going to seek legal advice as wel re access to money by kids at what min age etc etc

https://www.unbiased.co.uk/discover/personal-finance/savings-investing/investing-a-lump-sum-for-a-child-what-are-the-options

Thanks

Albermarle

diystarter7 said:

Hi  OP

The above is good

We are condieirng giving large amounts to grandkids and recently read this

https://www.unbiased.co.uk/discover/personal-finance/savings-investing/investing-a-lump-sum-for-a-child-what-are-the-options

We've not acted as yet as we are thinking about the amoutns and are going to seek legal advice as wel re access to money by kids at what min age etc etc

https://www.unbiased.co.uk/discover/personal-finance/savings-investing/investing-a-lump-sum-for-a-child-what-are-the-options

Thanks

Trying to prevent them accessing the money at 18 , by maybe using some kind of trust, is potentially letting yourself into a lot of cost and potential hassle. So just be careful of lawyers trying to persuade you to do this for their fees, and make sure you fully understand all the implications/how it will work before agreeing to anything.

eskbanker

diystarter7 said:

We are [considering] giving large amounts to grandkids

[...]

We've not acted as yet as we are thinking about the amoutns and are going to seek legal advice as wel re access to money by kids at what min age etc etc

Perhaps worth highlighting that this is likely to be a different scenario from OP, where it appears that the children have received an inheritance, so its terms are likely to allow less leeway about deciding on access ages, etc, for their money, whereas you can do what you like with your money....

55sarah55

My children are 11 and 14, they each received approx. 18k each.
I've looked at a few savings accounts, ISAs even premium bonds but I can't decide what is best.

Band7

Here are lots of options:

1. https://moneyfacts.co.uk/savings-accounts/childrens-savings-accounts/?quick-links-first=false
   
   
2. https://moneyfacts.co.uk/isa/junior-isas/?quick-links-first=false
   
   
3. Regular Savers for kids listed in https://forums.moneysavingexpert.com/discussion/6106986/regular-savings-accounts-the-best-currently-available-list/p1

You could even start pensions for them - though they wouldn't be able to access those for decades.

You don't have to put all the money into a single account

Albermarle

55sarah55 said:

My children are 11 and 14, they each received approx. 18k each.
I've looked at a few savings accounts, ISAs even premium bonds but I can't decide what is best.

Premium Bonds can be an option( on top of all the others already suggested) if you might need quick access to the money and/or you like to take a risk of a lower average return, with the very small possibility of a big win.

Keep_pedalling

55sarah55 said:

Hi,

My children and I have recieved some inheritance. I want to choose the right savings for my kids. I wanted to place it all in the account at once without having to pay into an account that has a maximum monthly limit. Does such a thing exist?
Thanks

You can’t lump all of the money into a single account, you need to hold each of their inheritances it trust until they are 18 so each of them will need separate accounts. It would be possible to open a Junior ISA for each of them putting £9000 now and another £9000 in on April 6th. 

This assumes you have not paid into JISA previously this financial year.

xylophone

another £9000 in on April 6th. 

In the meantime it can he held in trust in  a child savings account.

Example

https://www.skipton.co.uk/savings/childrens