Saving for granddaughter, have I missed anything?

Dr_Wu

Hi

We're currently squirreling a bit away each month for our granddaughter who will be 3 in Feb. Plan is to give it to her when she's 18. We've just been putting it in a high interest easy access savings account up until now and she's got about £2K. The plan is to add £60/£70 a month to this for the next 15 years. My thinking is that given the timescale and the drip-feeding nature of our savings plan that a low cost stocks and shares ISA is a no-brainer? We have our own savings in a combination of cash ISA and VLS so thought about something like another VLS ISA for the wee one. We will never now max out our ISA allowance as we're both early retired (unless govt makes seriously draconian changes to things) so that's not an issue.
Any thoughts or am I on the right lines?
Thanks in advance

Emmia

Do you have a will that leaves this money to her in the event of your demise before she's 18?

Dr_Wu

No, good question, but in the will it goes to her mum who would look after it for her.

elsien

Any particular reason you’re doing it in your own name rather than in hers, such as a junior ISA? You would have to go through her parents, but then the money is clearly hers whatever curveballs life might throw at you.

Albermarle

Normally you should use a S&S JISA.
These two investment platforms offer them with no charge.
There will be a charge for the actual investments of course.
You can buy VLS funds, or similar on both platforms.
Junior ISA | Invest in a Junior Stocks and Shares ISA | Fidelity
Junior ISA | Junior Stocks and Shares ISA | HL

A parent has to open and manage the JISA, but anybody can contribute.

Keep_pedalling

We got our children to open a S&S JISA for each of our grandchildren as babies which we added lump sum once opened and top it up each birthday. 

Emmia

Dr_Wu said:

No, good question, but in the will it goes to her mum who would look after it for her.

If it goes to her mum, her mum is under no obligation to give it to her directly. If you want it to go to your granddaughter then you should leave it to her specifically.

xylophone

Have you asked her parents to open a JISA for her?

mta999

Yes, you have missed the effects of inflation. A stocks shares ISA is better.

wmb194

One of the advantages of saving in your own name is that you don't have to give it to them at 18 (16 Scotland).

elsien

Whereas the downside is that if it’s in your own name, it would be an asset as part of a divorce/needing to claim means tested benefits/pay for care  et cetera.
Which may well not be considered to be an issue right now but sometimes !!!!!! happens.