Grandchild

Jacko593

Hi… we have our first grandchild and want to invest/save for their 18th birthday… what is the best way ?

eskbanker

A Junior ISA is likely to be the best vehicle, but would need to be opened by a parent:

https://www.moneysavingexpert.com/savings/junior-isa/

ForumUser7

Jacko593 said:

Hi… we have our first grandchild and want to invest/save for their 18th birthday… what is the best way ?

https://moneyfactscompare.co.uk/savings-accounts/childrens-savings-accounts/?quick-links-first=false

You can select 'Full Search' to apply filters, and 'type' to change to a regular saver for example if you wanted to look at that kind of product.

A JISA may well be a good idea, as stated by @eskbanker

Albermarle

Due to the long time scale involved then it would normally be recommended to have a Stocks & Shares JISA, as opposed to a cash JISA.
The money could be invested in a simple low cost global index tracker. 

xylophone

 One of your grandchild's parents could open a JISA for him/her and you could contribute.

https://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa

https://www.gov.uk/junior-individual-savings-accounts

Fidelity has been given favourable mentions on the forum.

https://www.fidelity.co.uk/junior-isa/junior-isa-faq/?gclid=EAIaIQobChMInrCXqcGL_gIV6YFQBh0hYgHtEAAYASABEgKGm_D_BwE&ef_id=EAIaIQobChMInrCXqcGL_gIV6YFQBh0hYgHtEAAYASABEgKGm_D_BwE:G:s&s_kwcid=AL!8153!3!647489335575!p!!g!!+child +isa&utm_source=google&utm_medium=paid_search&utm_campaign=UK_-_Generic_-_Junior_ISA_-_Tier_1_-_BMM&gclsrc=aw.ds#2792572

https://monevator.com/passive-fund-of-funds-the-rivals/

https://monevator.com/best-global-tracker-funds/

https://monevator.com/a-cheap-portfolio-of-cheap-assets/

https://monevator.com/low-cost-index-trackers/

wmb194

If I were you I'd also consider saving in and Isa - because it simplifies tax and administration - or other another account in your own name and earmark the money to give to them. This makes it much easier to decide whether or not to give them a big lump at 18.

boingy

It would be really nice if you could nominate the maturation date of a JISA when you set it up. I think 18 is often a bit too young. 21 might be a better age or even a few years later, aiming to help with that first house deposit rather than maybe the first car and the last holiday blowout with your school mates before you separate and start building your new life.
I was financially irresponsible at 18, running up university debts (pre student loan) and spending too much on a car I probably didn't need (but which made me popular!) If you had given me the proceeds of a JISA back then I would have been even more financially irresponsible. Fast forward a few years and I had debts to pay off and a house deposit to find. A JISA at that point would have been very helpful and not frittered away. All kids are different but 18 is very young to have a chunk of money thrown at you.

Beddie

wmb194 said:

If I were you I'd also consider saving in and Isa - because it simplifies tax and administration - or other another account in your own name and earmark the money to give to them. This makes it much easier to decide whether or not to give them a big lump at 18.

Agreed - I would do the same.