Child savings

[Deleted User]

hi, my son (16) has £29k in a savings acc which he does not know about. This has been made up of child benefit, bday, Xmas etc. The acc has been changed to an adult acc giving only 3.05%. 

I am unsure how to invest to get the best return for him ? 

eskbanker

Bearing in mind that he will have access to the money at 18, it'll be best to keep it in savings rather than investing it.

xylophone

If it has changed to an adult account, has the bank holding the account written to your son advising him of this?

[Deleted User]

No, they have emailed me to advise as I am named on the account … 

im wondering whether a junior ISA & new savings accounts would be better ? 

Albermarle

[Deleted User] said:

No, they have emailed me to advise as I am named on the account … 

im wondering whether a junior ISA & new savings accounts would be better ? 

The point that is being made is that at age 18 he will be legally in control of the money.
So maybe best to consult him now about what do with it for the next 2 years. Plus it will give him time to get used to knowing it is there, and give you time to educate him on not blowing it all.

xylophone

Something else to note, you indicate that much of the money in this account has been provided by parents.

Are you aware of the "£100 Rule" in respect of interest?

https://forums.moneysavingexpert.com/discussion/comment/80655736/#Comment_80655736