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Interest for 17 yr old on £35,000
A children's account was moved on his 17th birthday to a Virgin account paying about 1%. What could he do with this to at least protect against inflation
Comments
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Over the long term keeping the money in savings will mean that it loses value to inflation.
There will be fewer options now than when he becomes 18. For example £9k could go into a JISA (either Cash or Stocks & Shares) or the whole lot could go into Premium Bonds.
How much of the money should remain in savings and how much should be invested will depend on his circumstances.
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What could he do with this to at least protect against inflation.
In short - invest it. However the question is not that simple. When will he want to use the money? 5 years, 10 years, 20 years?
Basically, savings do not beat inflation. Investing usually does but the caviat is over time.
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