Invest child’s money?

Lyn72

Hi, my 13 year old was gifted £16000 last year and it’s still sat in a regular account, we know we need to be investing it but not sure what the best option is. Any advice would be appreciated, high savings account, shares, premium bonds etc. Thank you

GDB2222

I’d say a FTSE tracker fund. The money won’t be needed for years, I assume.

Keep_pedalling

You can get it all in a JISA if you act before 5th April. £9000 now and the rest on the 6th April (assuming you have not already used this year’s allowance)

The question is saving or investment, cash may be the safer option as they only have 5 years until their 18th birthday. 

xylophone

The money belongs to your son absolutely as it was gifted to him and presumably is either in an account in his sole name or is in an account of which you are bare trustee.

You do not mention whether or not he has a JISA or whether or not access to the money will be required before he is eighteen.

If it is not, then the JISA would be suitable - cash and shares or cash or shares or both.

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

Best rate generally available for cash is offered by Coventry BS.


https://www.coventrybuildingsociety.co.uk/member/help/savings/my-quick-guide-to-isas/learn-more-about-junior-isas.html

Hargreaves Lansdown or Fidelity are often given favourable mentions for stocks and shares JISA - a global multi asset fund might suit.

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

Lyn72

Thank you for the information.it is in a basic savings account in his name with me as trustee, he won’t need access to it as soon as he turns 18 so we have options for longer term possibilities.

xylophone

Consider stocks and shares JISA = below might be worth a look.

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