best way of saving for grandaughters future?

sadexpunk

id like to start a small savings policy for my 4 year old grandaughter so that at 18 she'll have a bit of something to help her out, nothing earth-shattering, maybe £20 per month.
i initially thought JISA but reading up on it, it would appear theres no actual benefit to these over other savings methods now, is that correct?  plus i think only parents can open them, so id have to involve them too, is that right?  thats not a problem if its the best way of doing this, so just thought id ask your opinions.
id like to be able to check it myself from time to time, see how its doing, and prefer S&S as im satisfied that over the next 14 years theyd outperform normal savings.
whats my best option do you think?

thank you.

Albermarle

For regular investing into a childrens account, a S&S JISA is the easiest option.
Two providers ( HL and Fidelity ) do not even charge for them, although possibly £25 may be the minimum amount you can add.
Junior ISA | Invest in a Junior Stocks and Shares ISA | Fidelity
Junior ISA | Junior Stocks and Shares ISA | HL

You will have to choose an investment for the JISA.( which will have its own cost)

sadexpunk

Albermarle said:

For regular investing into a childrens account, a S&S JISA is the easiest option.
Two providers ( HL and Fidelity ) do not even charge for them, although possibly £25 may be the minimum amount you can add.
Junior ISA | Invest in a Junior Stocks and Shares ISA | Fidelity
Junior ISA | Junior Stocks and Shares ISA | HL

You will have to choose an investment for the JISA.( which will have its own cost)

i was thinking of investing in a lifestrategy 80 fund.  so itd just be the monthly fee for that then yes?  and i could probably push to £25 :-)

am i actually allowed to open one for her myself then?  it doesnt need to be parents only?

thank you

sadexpunk

just been reading up on those links, and also interactive investor.  it appears that no, i cant open one, although i can contribute to one that my son opens for her.  so am i right in thinking that my two options are to either do that, or just open another ISA in my name but for her?  a problem i can see with that is that its my estate, so if i die before shes 18 then she wouldnt get it.  i already have an ISA but dont contribute to it monthly, so whatever i do i wont be hitting any contribution limits.

thanks

xylophone

 that its my estate, so if i die before shes 18 then she wouldnt get it.

Not so - you would make a specific bequest to your granddaughter in your will.

It would then be held in bare trust for her until the age of 18.

However, it seems to me that the easy option is for your son to open a JISA for the child and for you to contribute to it.

sadexpunk

However, it seems to me that the easy option is for your son to open a JISA for the child and for you to contribute to it.

and can i do this by DD?  ive seen conflicting advice, one site saying only parents can set up a DD and grandparents just a lump sum.  others a bit vague.

thanks

Green_hopeful

I have premium bonds for my grandchildren. I pay a fixed amount on their birthdays. Not loads but it mounts up over the years. I have reinvested the winnings. One of them won £500 last year. There is a minimum amount to invest but you could do it a couple of times a year to meet the minimum. 

xylophone

https://www.hl.co.uk/partners/search/jisa?partners=1&theSource=PCHLJ&Override=1&adg=G+HLBJ+JIS&gad_source=1&gclid=CjwKCAiApY-7BhBjEiwAQMrrEcX5090ghfVuqWxRfd_CVQsLvabI9v1rBzcLvDiR38Y2JX-P4BhWURoCoesQAvD_BwE

• Simple - once opened by a parent or guardian, anyone can contribute to a Junior ISA

AlanP_2

Vanguard platform also offers JISA at no fee I believe so that might be another option.

Alexland

AlanP_2 said:

Vanguard platform also offers JISA at no fee I believe so that might be another option.

My understanding is that Vanguard will continue to charge a 0.15% platform fee on JISAs but the new £4pm minimum will not apply so the charge will remain entirely variable.

Fidelity do a great job with my kids free accounts and according to this form (bottom of page 1) once the account has been opened by a parent of guardian it's possible to setup regular direct debit contributions with fund investment instruction from 'third party' ie not parents or guardians:

https://www.fidelity.co.uk/forms/accounts-children/

https://www.fidelity.co.uk/media/PI UK/pdf/forms/isa/jisa-top-up.pdf

I believe the form needs completing/signing by the parent or guardian and the DD section needs completing and signing by the contributor but you may wish to call them to clarify the process before opening the account.

Albermarle

sadexpunk said:

Albermarle said:

For regular investing into a childrens account, a S&S JISA is the easiest option.
Two providers ( HL and Fidelity ) do not even charge for them, although possibly £25 may be the minimum amount you can add.
Junior ISA | Invest in a Junior Stocks and Shares ISA | Fidelity
Junior ISA | Junior Stocks and Shares ISA | HL

You will have to choose an investment for the JISA.( which will have its own cost)

i was thinking of investing in a lifestrategy 80 fund.  so itd just be the monthly fee for that then yes?  and i could probably push to £25 :-)

am i actually allowed to open one for her myself then?  it doesnt need to be parents only?

thank you

Yes there would be just the fee for the Lifestrategy 80 fund at 0.22% per annum.
In fact you would not have to pay it directly. The fund pays itself.