Home Forums Chat Forum Child trust fund or something else?

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  • Child trust fund or something else?
  • stevenmenmuir
    Free Member

    My daughter has been given about £4000 from some relatives. She’s just turned 14 so most of it will go into savings of some kind until she’s 18. She has a child trust fund with the Post Office already so should I just put the money in there or is it better to mix it up a bit and maybe use an ISA or something.

    fossy
    Full Member

    THe returns aren’t bad in the child trust funds, so it’s a safe bet.

    suburbanreuben
    Free Member

    Junior stocks and shares ISA

    wzzzz
    Free Member

    JISA and don’t tell her about it until she wants to buy a house……

    andykirk
    Free Member

    No brainer. Bitcoin. It’s cheapish right now if you can get in quick.

    bensales
    Free Member

    JISA if you don’t mind them having complete control over the cash.

    ISA in your name otherwise.

    I use Vanguard for my kids’ stocks and shares JISAs. I like the easy control over the funds used, and the low fees.

    suburbanreuben
    Free Member

    “JISA if you don’t mind them having complete control over the cash.”
    Rubbish!

    bensales
    Free Member

    What’s inaccurate about that statement?

    You can’t withdraw it, although I concede you can move it to different providers and control how it’s invested.

    At 16 the child controls the account, although they can’t withdraw.

    At 18 the account gets converted into an ISA in the child’s name. At that point, it’s coke and hookers all the way if they want to.

    soundninjauk
    Full Member

    JISA if you don’t mind them having complete control over the cash.

    ISA in your name otherwise.

    I use Vanguard for my kids’ stocks and shares JISAs. I like the easy control over the funds used, and the low fees.

    This is exactly the approach I’ve taken. Hopefully by the time she gets her hands on the money I’ll have brought her up well enough to be sensible with it…

    Markie
    Free Member

    Maybe consider setting up a pension for them? The government then adds to it!

    https://www.bestinvest.co.uk/pensions/sipps/pensions-for-children

    rockhopper70
    Full Member

    I was going to say a LISA, but it’s 18+. We have them for our kids, max £4k per year and guaranteed 25% bonus, and can only be used for a house deposit.

    Maybe isa to 18 then put it in a LISA?

    IA
    Full Member

    can only be used for a house deposit.

    Unless you want to take the 6% hit…

    boxelder
    Full Member

    As above – ISA. At 18, show them how the savings have (hopefully….) grown, encouraging continued saving. Point out that if they take out £2.88K and stick it in a SIPP, Mr Sunak will magic it into £3.6K.

Viewing 13 posts - 1 through 13 (of 13 total)

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