Best way to further invest a CTF

Dash1

Hi,

My daughter has just turned 18 & had her CTF mature, so now we were wondering what would be the best way to invest some of her money.

She has about £9,000 after her keeping some for personal use (shopping spree, etc.), & she will be going back to college in September, & does not currently work.

So anyway, we weren't sure the best way for her to invest her money, where she might want to use some in the future to possibly start her own business.🤞

We have thought about an ISA, as I have read they are a good way to invest, but as said she might want to access money for possible future endeavours, so are there any other options, or is this the best?

Any help or advice would be gratefully appreciated.

Spies

Cash ISA allows instant access to the money so it does seem like the best choice

Dash1

Spies said:

Cash ISA allows instant access to the money so it does seem like the best choice

Is there a best bank/building society to open a Cash ISA? 

Currently she has an account with the Halifax, but I'd rather her money went to the best account possible.

Thanks again for your help & advice, it is very much appreciated.

Dazed_and_C0nfused

Dash1 said:

Spies said:

Cash ISA allows instant access to the money so it does seem like the best choice

Is there a best bank/building society to open a Cash ISA? 

Currently she has an account with the Halifax, but I'd rather her money went to the best account possible.

Thanks again for your help & advice, it is very much appreciated.

Given her lack of other taxable income an ISA isn't necessarily going to give the best return (in cash savings terms).

A non ISA account paying a better rate of interest would be better as she can earn £18,570 in interest before paying any tax on it.

Dash1

Dazed_and_C0nfused said:

Dash1 said:

Spies said:

Cash ISA allows instant access to the money so it does seem like the best choice

Is there a best bank/building society to open a Cash ISA? 

Currently she has an account with the Halifax, but I'd rather her money went to the best account possible.

Thanks again for your help & advice, it is very much appreciated.

Given her lack of other taxable income an ISA isn't necessarily going to give the best return (in cash savings terms).

A non ISA account paying a better rate of interest would be better as she can earn £18,570 in interest before paying any tax on it.

So again, any ideas where, or which sort of account would be better?

I've seen a post on here mentioning the Cynergy Bank, or Leeds Building Society. Are building societies a good place to put your money, as I know they can sometimes be taken over by bigger banks, though I know this is a very rare thing, though I thought I read something about the Nationwide BS.🤔

Your advice is much appreciated.

Spies

Dazed_and_C0nfused said:

Dash1 said:

Spies said:

Cash ISA allows instant access to the money so it does seem like the best choice

Is there a best bank/building society to open a Cash ISA? 

Currently she has an account with the Halifax, but I'd rather her money went to the best account possible.

Thanks again for your help & advice, it is very much appreciated.

Given her lack of other taxable income an ISA isn't necessarily going to give the best return (in cash savings terms).

A non ISA account paying a better rate of interest would be better as she can earn £18,570 in interest before paying any tax on it.

Show me an easy access saver which gives more than 5.2% of Chip and Trading212 cash ISA's? 

Dash1

We/she had been thinking about putting some of the money in to her you get sisters CTF, as that seemed to be getting good interest. It would only be in there for just under 2 years as her sister has only just turned 16 in June. Do you think this would be a good idea, it's a Stocks & Shares CTF, which had a rise over 29%, in its last statement, but we know that this can drop well below this.

Would it be ok to put some of her money in there, though we know she'd have to wait for her sister to turn 18 to get access to it.

Thanks again.

refluxer

Dash1 said:

We/she had been thinking about putting some of the money in to her you get sisters CTF, as that seemed to be getting good interest. It would only be in there for just under 2 years as her sister has only just turned 16 in June. Do you think this would be a good idea, it's a Stocks & Shares CTF, which had a rise over 29%, in its last statement, but we know that this can drop well below this.

Would it be ok to put some of her money in there, though we know she'd have to wait for her sister to turn 18 to get access to it.

Thanks again.

It won't be a good idea to put her money into her sister's CTF because that money would then legally belong to her sister and things could get sticky if they fell out.

If your daughter is likely to need access to the money in the short to medium term (ie. the next few years), then investing in stocks and shares isn't a good idea anyway as that type of investing is usually better for the medium to long-term and therefore better suited to those with longer term goals (those who don't need access to the money for at least 5 to 10 years).

From the information you've given, it sounds like she just needs to put her money into a high-paying savings account, As she can earn up to £18,570 in combined salary and savings interest without paying tax, this doesn't necessarily have to be an ISA but there'd be no harm in saving in a cash ISA if it paid a higher rate than a non-ISA savings account.

wmb194

Dash1 said:

Hi,

My daughter has just turned 18 & had her CTF mature, so now we were wondering what would be the best way to invest some of her money.

She has about £9,000 after her keeping some for personal use (shopping spree, etc.), & she will be going back to college in September, & does not currently work.

So anyway, we weren't sure the best way for her to invest her money, where she might want to use some in the future to possibly start her own business.🤞

We have thought about an ISA, as I have read they are a good way to invest, but as said she might want to access money for possible future endeavours, so are there any other options, or is this the best?

Any help or advice would be gratefully appreciated.

A savings account.

https://moneyfactscompare.co.uk/savings-accounts/

Dash1

wmb194 said:

Dash1 said:

Hi,

My daughter has just turned 18 & had her CTF mature, so now we were wondering what would be the best way to invest some of her money.

She has about £9,000 after her keeping some for personal use (shopping spree, etc.), & she will be going back to college in September, & does not currently work.

So anyway, we weren't sure the best way for her to invest her money, where she might want to use some in the future to possibly start her own business.🤞

We have thought about an ISA, as I have read they are a good way to invest, but as said she might want to access money for possible future endeavours, so are there any other options, or is this the best?

Any help or advice would be gratefully appreciated.

A savings account.

https://moneyfactscompare.co.uk/savings-accounts/

Thank you for the link, it is very interesting & I'm sure it will be very helpful, just as all the replies which I have received will be.

Can I ask, is a LISA something that she should possibly consider as a type of ISA should she choose the ISA options. Could she possibly benefit from splitting the money between the savings account & an ISA/LISA?

Thanks again for your help.

Eyeful

1. Pay off any high interest debt first, if she has any.
2. Use tax shelters were possible & think long term. I know that is hard for the young. 
(a) Pensions for very long term. You get "free money" The money & your contributions are allowed to grow tax free at least till  you withdraw it.
(b) Cash ISA's for any money you will need within 5 years.
 https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html.
(c) If she will not need the money within 5 years, may be think of a stocks & shares ISA.

This new government is going to increase taxes to pay for things they want done, they always do. Labour especially!
Remember with pensions the early contributions have the most effect & time in the investment will do the "heavy lifting".
They might reduce the amount you can put into tax shelters. Or when she wants one, finds ISA's are no longer on sale.
I am sure she will start paying tax all too soon. At least she will think so.