Grandchildren

Threebabes

Hi, we have 2 new granddaughters and a step granddaughter and wanting to open a savings account for them.

I am clueless where to start. Their parents would rather they didn’t have access to it until in their 20’s rather than 18 if possible. I’m befuddled by junior Isra’s, premium bonds etc….

thank you for any help and advice 

El_Torro

If you don't want them to have access at 18 there aren't many options that will accommodate. If this is important then the best thing would probably to keep the money in your name, or in the parents' names. That way the person who owns the account controls when they receive the money. 

There also isn't much point in putting the money in savings. Better to invest it in shares. Savings will be eroded by inflation, whereas if the money is invested for a couple of decades it should perform a lot better than savings.

DiamondLil

I have investment accounts - one designated to each grandchild - in my name. I drip feed into these from time to time, but otherwise, leave them to grow. My will states exactly what I wish to happen to the funds if I die before I've given the funds to the intended recipients. Charles Stanley Direct and Hargreaves Lansdown provide this service at a reasonable cost.

Reaper

I think a Junior ISA would be your best bet. They could withdraw it at 18 but if they do nothing it will keep going and convert into an adult ISA. And if it were me I'd choose the share version as it ought to outperform savings over the long term, which this is.

Iain_For

Reaper said:

I think a Junior ISA would be your best bet. They could withdraw it at 18 but if they do nothing it will keep going and convert into an adult ISA. And if it were me I'd choose the share version as it ought to outperform savings over the long term, which this is.

Grandparents can’t open Junior ISA’s only parents or legal guardians. They can contribute to them however.