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  • FIRST POST
    • Jennywren23
    • By Jennywren23 13th Jan 19, 1:41 PM
    • 3Posts
    • 0Thanks
    Jennywren23
    Advice please for investing for my daughter
    • #1
    • 13th Jan 19, 1:41 PM
    Advice please for investing for my daughter 13th Jan 19 at 1:41 PM
    Hi

    My daughter has 10,000 due to her in inheritance from a grandparent. I am not sure what to do with it for the best for her, she is 12 years old. She doesn't have an ISA so I thought I could open one for her and maybe put the rest in savings account but the interest rate doesn't seem very high on the savings accounts and many of the ones I see online I have never heard of so am feeling unsure. I would appreciate any advice. Thanks
Page 1
    • xylophone
    • By xylophone 13th Jan 19, 1:53 PM
    • 28,006 Posts
    • 16,892 Thanks
    xylophone
    • #2
    • 13th Jan 19, 1:53 PM
    • #2
    • 13th Jan 19, 1:53 PM
    she is 12 years old.
    So she has a CTF?

    She cannot have both a CTF and a JISA.

    See below

    https://www.skintedmintedmum.co.uk/minted-blog/how-to-transfer-a-child-trust-fund-ctf-to-jisa-with-a-double-scoop-of-tax-allowance.html

    It would be possible to contribute the maximum to the CTF, transfer to JISA, contribute maximum to JISA for current tax year as explained.

    This could cover the bulk of the 10,000 - the balance could be held in a child account and then transferred to the JISA on 6 April.

    The best rate available for JISA at the moment is offered by Coventry BS.

    https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html
    • Flobberchops
    • By Flobberchops 13th Jan 19, 3:33 PM
    • 898 Posts
    • 714 Thanks
    Flobberchops
    • #3
    • 13th Jan 19, 3:33 PM
    • #3
    • 13th Jan 19, 3:33 PM
    Were there any stipulations or instructions put in place for the money?
    I work for a UK bank, but any comments made on this forum are solely my personal opinion. Caveat Emptor!
    • Corona
    • By Corona 13th Jan 19, 5:06 PM
    • 872 Posts
    • 803 Thanks
    Corona
    • #4
    • 13th Jan 19, 5:06 PM
    Start a pension?
    • #4
    • 13th Jan 19, 5:06 PM
    I know this may sound a bit premature, but have you thought about using it to start a pension for her? Whatever you put in, the government puts in an additional 20% and she can't touch it until she's 55; money can be fed into it either from you or her over the years, and, as she's so young, the accumulation of interest over the next 43 years could really add up. She may be able to transfer it to an employee's pension at a later date, or leave it as an additional one. As her generation will probably have to work until they're 70 before they can get the state pension, having something maturing at 55 would be a big help? (Best to get independent financial advice on this one).
    • Jennywren23
    • By Jennywren23 13th Jan 19, 5:41 PM
    • 3 Posts
    • 0 Thanks
    Jennywren23
    • #5
    • 13th Jan 19, 5:41 PM
    Hi
    • #5
    • 13th Jan 19, 5:41 PM
    Hi Thanks for the advice, she does have a CTF and this seems like a good plan - thank you.
    • Jennywren23
    • By Jennywren23 13th Jan 19, 5:42 PM
    • 3 Posts
    • 0 Thanks
    Jennywren23
    • #6
    • 13th Jan 19, 5:42 PM
    • #6
    • 13th Jan 19, 5:42 PM
    No stipulations really but I want it to be made available to her when she is 18 in case she wishes to go to University.
    • wjr4
    • By wjr4 13th Jan 19, 6:09 PM
    • 450 Posts
    • 298 Thanks
    wjr4
    • #7
    • 13th Jan 19, 6:09 PM
    • #7
    • 13th Jan 19, 6:09 PM
    Personally, I’d steer clear of pensions for children at the moment because children need as much help/money as they can to get on to the properly ladder/start their adulthood’s.
    • Alexland
    • By Alexland 13th Jan 19, 6:34 PM
    • 4,194 Posts
    • 3,510 Thanks
    Alexland
    • #8
    • 13th Jan 19, 6:34 PM
    • #8
    • 13th Jan 19, 6:34 PM
    I agree if the money was left to the child it is their money and they must be allowed access at 18.
    • Keep pedalling
    • By Keep pedalling 13th Jan 19, 7:06 PM
    • 5,823 Posts
    • 6,637 Thanks
    Keep pedalling
    • #9
    • 13th Jan 19, 7:06 PM
    • #9
    • 13th Jan 19, 7:06 PM
    I know this may sound a bit premature, but have you thought about using it to start a pension for her? Whatever you put in, the government puts in an additional 20% and she can't touch it until she's 55; money can be fed into it either from you or her over the years, and, as she's so young, the accumulation of interest over the next 43 years could really add up. She may be able to transfer it to an employee's pension at a later date, or leave it as an additional one. As her generation will probably have to work until they're 70 before they can get the state pension, having something maturing at 55 would be a big help? (Best to get independent financial advice on this one).
    Originally posted by Corona
    Absolutely not. The OPs daughter is entitled to her inheritance on her 18th Birthday not when she is 55. If the OP wants to pay their own money into a pension for har he can but as a trustee to her inheritance he has no right to lock that money into a pension.
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