where to put granny's money?

phoebe03cat

Granny has given £3000 to each of my kids. Well, one is a student of 18 but doesn't pay tax. The other 13 years old. They could lock this away for a couple of years. Any ideas please as to the best way to go with these savings. The eldest is doing a great job living off the student loan which won't need to be repaid for a while so it seems sensible to keep working from this and invest the capital. Thanks for your thoughts.

jennifernil

For the student I would consider an ISA. If he/she gets a part time or holiday job he/she could become liable to tax.

For the 13 year old I would find the best paying childrens account, then consider feeding it into regular savings accounts, they pay a good rate. At 16 he/she could start putting the maximum into an ISA.