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£10000 to for children
tabath
Posts: 497 Forumite
My kids grandfather is giving them £5000 each for when they leave education this week - hopefully university! Anyway one is 11 and the other 14 and I was wondering what the best options for investing it are at the moment?
Thanks for any advice
Thanks for any advice
Starting MB- looking for Raf offers.
Amazon Club Sellers member 0015 come and join us make some space and get hold of some cash, we're on the Ebay and other auctions, Car Boot and Jumble Sales Board
Amazon Club Sellers member 0015 come and join us make some space and get hold of some cash, we're on the Ebay and other auctions, Car Boot and Jumble Sales Board
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Comments
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Halifax Junior Cash ISA paying 6% (if the nominated parent has a Halifax cash ISA themselves) would be a starting point to consider.
Xylophone will be along in a minute with some links to other suggestions.0 -
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/DG_10013916
Lots of useful links from above.
You could use the JISA (see link). http://www.halifax.co.uk/savings/accounts/branch-accounts/?pagetabs=2
might be worth a look.
Otherwise, you need to decide whether the each child will hold the money in his/her own name or with you as bare trustee.
If as Trustee you are not limited to child accounts - you need to check with provider whether a "Re" or "Trustee of" is acceptable.
A fixed rate bond might be worth considering.
See http://www.hmrc.gov.uk/tdsi/children.htm concerning tax and children.
http://www.money.co.uk/savings-accounts.htm0 -
Thanks for your reply, will take a look at the links.
Looking at junior ISAs though the ones I have seen offer derisory returns and I have read various articles that came to the same conclusion hence my posting of this question here. Thanks again for your input!Starting MB- looking for Raf offers.
Amazon Club Sellers member 0015 come and join us make some space and get hold of some cash, we're on the Ebay and other auctions, Car Boot and Jumble Sales Board0 -
http://www.halifax.co.uk/savings/interest-rates/personal-rates/#junior-cash-isaderisory returns
6% not derisory? (Note "relationship" condition.)
You could consider the stock market option in or out of the JISA - make sure that you are registered as "bare trustee" if outside the JISA.
See http://www.sit.co.uk/products/investing_for_children/features/questions_and_answers/ for example.
https://www.hl.co.uk/free-guides/investing-for-children2 might be worth a look.
http://www.hmrc.gov.uk/individuals/savings-income.htm0 -
Yes , llooked at that and I don't have a Halifax Cash ISA so it would be 3%. Having read Martins report on child savings you can get 4% with the Halifax Kids Fixed 5 year saver- seems to be about the best I've found so far.Starting MB- looking for Raf offers.
Amazon Club Sellers member 0015 come and join us make some space and get hold of some cash, we're on the Ebay and other auctions, Car Boot and Jumble Sales Board0 -
Could either parent open a Halifax ISA with £1 or more?I don't have a Halifax Cash ISA so it would be 3%0 -
Also with the Halifax ISA you are only allowed £100 per month for a year giving a max £1200 final deposit - we've got £5000 to invest.Starting MB- looking for Raf offers.
Amazon Club Sellers member 0015 come and join us make some space and get hold of some cash, we're on the Ebay and other auctions, Car Boot and Jumble Sales Board0 -
I think you're mixing it up with Kids Regular Saver.Also with the Halifax ISA you are only allowed £100 per month for a year giving a max £1200 final deposit - we've got £5000 to invest.
Junior Cash ISA says:Unlimited number of deposits – up to £3,600 for the tax year
http://www.halifax.co.uk/savings/accounts/branch-accounts/#juniorcashisa0 -
Ah ok -yes was mixing it up with the kids regular saver.So I could open one myself with a £1 and then open further ones for the kids?Starting MB- looking for Raf offers.
Amazon Club Sellers member 0015 come and join us make some space and get hold of some cash, we're on the Ebay and other auctions, Car Boot and Jumble Sales Board0 -
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