Best ISA for a new grandchild

Soreknees2

Hi my first post as a newbie. Interested in investment for a new Grandchild via an ISA type of savings account that will be invested in long term savings. Anyone ideas on best options available for a long term investment until little one reaches the age of 18. Any advice welcome
thanks

eskbanker

Junior ISA will probably be best, but needs to be opened by the parents:

https://www.moneysavingexpert.com/savings/junior-isa/

A stocks & shares one is likely to be better than a cash one, at this stage....

Albermarle

Soreknees2 said:

Hi my first post as a newbie. Interested in investment for a new Grandchild via an ISA type of savings account that will be invested in long term savings. Anyone ideas on best options available for a long term investment until little one reaches the age of 18. Any advice welcome
thanks

Welcome to the forum.
Just to be clear that it is normally understood that investing and saving are two different activities.

Investing typically means Stocks and shares . You take a risk in the hope of getting good long term growth.
Saving means a safe savings account that will grow slowly with the interest.

With investing ( as long as you stick to simple mainstream products) the longer the time scale, the less risk involved.
Although stock markets do go up and down, in the long term the trend is nearly always up.
So for a young child, investing in a Stocks and shares JISA would normally be recommended.
There is an MSE guide to JISAs, both cash ones and stocks and shares ones.
Top junior ISAs: 4% children's ISA tax free - MSE
I do not think you can open one for a grandchild. The parents have to do it.

xylophone

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


You may contribute but one of the parents needs to open the JISA.

For stocks and shares JISA provider, Fidelity and Hargreaves Lansdown are often given a favourable mention on the forum.

With regard to investment choice, below might be worth a browse.


https://monevator.com/low-cost-index-trackers/

https://monevator.com/best-global-tracker-funds/comment-page-1/

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