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.

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

Junior stocks and shares ISA

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

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

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.

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

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.

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…

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

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

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?

can only be used for a house deposit.

Unless you want to take the 6% hit…

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.