£5000 to invest for my daughter. What is best option?

[Bertiebassetsbabe]

Daughter has received £5000 from an inheritance and I want to put it somewhere where it can earn the most interest. I googled, but there is so many different things out there my head is spinning.

Any advice would be very much appreciated.

[toffeebutterpopcorn]

How old is she?

[Bertiebassetsbabe]

13

[toffeebutterpopcorn]

Maybe a junior ISA?

[OverTheHill50]

I don't mean to be rude, but you have posted this in investments but you are talking about getting 'interest'.

You do really need to read up a bit before you make any decisions.
www.moneysavingexpert.com/savings/child-savings-tax-free/ is very good and can help you.

Your choices are broadly:

• a savings account, where the sum will currently earn low rates of interest but will not be at risk of falling in value

• an investment account, such as a Stocks and Share JISA (Junior ISA) where the amount will be at risk of falling, but could also rise higher than 0.5%

It's not a huge amount of money so I'd be inclined to say a Junior Cash ISA which would pay about 2.95% ?

[cyclingmad]

Or buy ns&i contact where she might win some money I've won lots of £25 over the years. And you can take your money out when you like its basically a free lottery

[cyclingmad]

Ns&I bonds*

[murbblurb]

If in the UK, ANY savings account WILL fall in value, they all pay much less than inflation (let alone real inflation...paid any bills recently?) and have done for well over a decade.

premium bonds pay no interest and therefore lose more money, but you might (only might) win a bit.

stocks and shares ISA with low charges (tracker) and forget it for 20 years.

[Cailleachian]

I would suggest that you buy at 0.003 btc. (approx £150 at today's prices), put it in cold storage, then forget about it until she is an adult.

You dont need to put any more in, thats enough.

But everyone who is investing for children should be have at least some btc.

[CaribouCarafe]

I'm not a finance whizz, but I'd be inclined to put the 5k into Index Funds and leave them in long-term for her. I think bonds are quite risky and a UK savings account is unlikely to produce much interest.

[Bard6817]

God how rich would I be now, if someone had given me £5k at 13 and my parent knew how to invest in a fund...

I won't give you chapter and verse.... But this is what I've done for my godson and my two daughters...

£x in an ISA for them....
Bought Fundsmith Equity Acc or Vanguard Global with it...

Ignore Bonds, Metals, Commodities, Bitcoin, and do not hold Cash...

She has time on her side... If the last 60 years are anything to go by, it will get anything from 12% to 20% per annum and earn between 50 and 100% every 5 years... Any lower than that, review fund choices... Any higher than 100%, consider diversifying too... eg. take excess profits...

Time is the critical factor in wealth generation with equities, and she has an abundance of that, if you can convince her not to spend it as soon as she gets it... But rather, get her to start putting in £25 a month in as soon as she can... There's a whole set of market theories that boil down to investing £25 a month (that's usually the minimum on the better investment platforms) called dollar cost averaging, that I think everyone should do... Honestly, knowing what I know now... So simple to be a millionaire, if you have time and £25 a month...

Anyway good luck getting to that first million, this is a brilliant first step.. :-)