£1000 to invest for children??????????????????

horsemadmoodymare

Hello I'm new to the MSE Forum. :grouphug:

My question is that I have £1000 to invest per child - two children (not mine!!!) But I want to put the money somewhere that I won't have to look at it until the children turn 18! 9 years for one and 13 years for the other!

What is my best plan of action please? Its been in the Savings Premium Bonds for three years without a sniff of a win!!!!!!!!!!!!

Help please.

Thank you. :j

horsemadmoodymare

Doesn't anyone want to talk to me then?

debbie42

For those sorts of timescales, you could be looking at an investment as opposed to a savings account. It depends on what you ae comfortable with?

horsemadmoodymare

Thank you Debbie.

It has to be the safest option, its my grandmother putting the £ in my care for her great grandchildren. I prefer the safest route too, I think!

Where would I start to find out about the investment side of things?

Thanks again.

chesky369

I think you might have to go through the parents if you open any kind of savings account, since you will need birth certificates, etc. (money laundering regs)

debbie42

My personal experience is with individual shares and savings. Individual shares are very risky, and savings for such a long period will probably erode away compared to the "real" value.

You could maybe look into investing in a couple of low risk funds, via, say, Hargreaves & Landsdowne. There is a thread on the ISA sub board, but it's maybe overkill for the amount you are talking of here? Hopefully someone else more knowledgeable than me may have some suggestions.

Whatever, make sure you document somewhere that the money has come from your Grandma. You can stick it into a higher paying savings account and apply for an R85 to get the interest paid gross. As it's not from the parents, it won't be subject to the £100 restriction.

oramgepekoe

Does the youngest child have a Child Trust Fund that this money could be added to?

horsemadmoodymare

Thanks.

I was thinking of just chucking it in an ISA and forgetting about it????? I assumed that would be easiest. What do you mean when you say the money will erode away compared to the "real" value?

I just have an instant access ISA and save that way, as I do need to get the money out from time to time. I was hoping that in Martins newsmails there'd a be an easy option of a long term tie in but with a really good interest rate - does that sound like a good or bad idea?

debbie42

horsemadmoodymare wrote: »

I was thinking of just chucking it in an ISA and forgetting about it????? I assumed that would be easiest. What do you mean when you say the money will erode away compared to the "real" value?

I just have an instant access ISA and save that way, as I do need to get the money out from time to time. I was hoping that in Martins newsmails there'd a be an easy option of a long term tie in but with a really good interest rate - does that sound like a good or bad idea?

It would presumably be in your name if an ISA? Children under 16 can't have one.
The erosion factor is based on the fact that, over time the interest paid on a savings account doesn't always keep pace with inflation. So, say, 10 years ago, the pound in your pocket would have bought more than it can today. Even with interest from a savings account, it's unlikely it will keep rate with inflation, long term.

horsemadmoodymare

oramgepekoe wrote: »

Does the youngest child have a Child Trust Fund that this money could be added to?

No neither of them do unfortunately!

horsemadmoodymare

Thanks anyone, you've all given me plenty to think about!!! Wish I'd not accepted responsibility for the job of making them as much money out of it as I could!!!

Debbie, I didn't know children couldn't have ISA's!!! Are there special "Children's Savings Accounts" out there then?