I have a small sum of money that I want to invest for my kids. It’s about 8k in total between two of them that was their mum’s pension value when she died.

Had just though about sticking it in the child trust funds but glad I didn’t as I looked into it today to see what the interest rate was and I just found out the money is locked away until they are 18 which is a long long way off yet.

Not being greedy but would like to know the best thing to do for them but equally that I can get the money in an extreme emergency.

Would it be just opening an ISA in my own name?

Investing it for your kids and you being able to get it out are kinda mutually exclusive.

Last advice I got in a similar situation was to stick it in a pension plan (for the kids). Seems weird to be putting money into pensions for kids, but if you think about it logically, it does make sense, £4K now will be worth a lot, lot more when they retire than £4K invested by them in their twenties or thirties.

Although you probably won’t be around to be thanked for doing it!

Best wishes grantus – sounds from what you’re asking like you’re continuing to cope and are on top of things, at least the practical stuff that needs dealing with, hope the other stuff is starting to get a little easier too mate.

thanks ed. and thanks also for the kind wishes. we are doing good matey. Daughter is 10 on Sunday – can’t believe the years have gone past so quickly 🙂

All the best

My understanding is anybody who had a CTF can’t use Junior ISA’s 🙄 The pension idea is a good one, although it’s a long way off till you get at the money. Personally, if you can’t get Junior ISA’s I’d put it in a share ISA in your name.

I was adviced to invest my small sum each month in a stocks and shares ISA in my name. That way if junior is thick and doesnt go to uni i can have the money back for bikes!! Fingers crossed. Or if he’s thick and wants to piss it up the wall he cant.

You don’t need an ISA for childs saving as unless you put a lot of money away for them they won’t be earning enough interest to pay tax on it anyway.

The only advantage of a child ISA is they convert to a regular ISA once the child turn 18 so they don’t have to pay tax if they get a job and pay income tax.

But if you are saving to buy them their first car or pay their uni costs then that doesn’t matter as the money will be all gone before the’ve paid any significant tax on it.

The big downside of a child ISA is that you have gifted the money to your kids. It is legally theirs and they can spend it all on blow n hookers if they want.

A regular savings account seems the best option. You just fill in a form so the bank don’t take tax of the interest.

Use it to reduce your highest interest debt now, then be in a better position to help your kids when they’re eighteen.