What do I do with my chikdren’s money?

[Merryoldgoat]

An aunt has given my children some money for their future - they’re 9 & 4 and both are autistic - I’m hoping the money could be a little nest egg to help them in the future.

It’s £5k each so significant but not life changing.

Where can I invest it given I don’t need to touch it for years?

Saving bonds.

Junior ISA?

Keep it in your name, otherwise you have to give it to them on their 18th birthday, and they could spend it all by the end of the day.

premium bonds are good

God don’t put it in premium bonds, Ffs.put put it in a high interest savings account that can’t be touched. Let it accrue. It will help them when they reach adult hood.

Pension and let it grow for decades. Don’t know if that’s a thing specifically but we have accounts for the kids with this idea - not for when they’re 21 but more for when they’re later on. Compound interest?

Premium bonds!
My daughter has a similar amount, she has won a few times and it just get reinvested so is building up nicely and the wins are more than the interest on a saving account would be.

This x 1,000,000.

Stick it in a long term limited access account or fixed term bond. In your name. Just in case.

I don’t want to pension it because they’ll need it earlier I expect given their additional needs.

i can keep in my name, that’s fine. Can you get decent rates for such a small amount? What about stocks/shares?

Halifax has a regular monthly saver paying 5% just now. Can only put £100 in each month so there's a linked easy access savings account too. Sure there will be others along with better options but it might be something to consider, I have my kids savings in it just now whilst I look for something a bit more long term.

Unless you are already using your personal Isa allowance this year of £20k I would put it in your name in a stocks and shares isa.

@Jarstastic

this seems like a good option! Thank you.

Do not put it in premium bonds! What a waste of time. Stick it in an investment bond, it'll be worth 3x that by the time they're 18 and can liquidate it.

@Beneficialchampion2

what are investment bonds?

I know I can Google but I’m lazy today

We have premium bonds and this year we won a prize 6 months in a row. I think they're great and you can also access the money v quickly if needed.

You could put it into a disabled persons trust fund. They can access it when they are are adults but it won't affect their benefits and money can only be withdrawn witr permission from the trustees so they can't spend it all ok sweets or whatever they are into at the time.

Not premium bonds when the interest rate is so good. Have a look on Martin Lewis money, some good advice. I’d suggest fixed rate bonds, but Martin advice is not to put it into a longer term bond as the rate might increase again, so 1yr at a time

Premium bonds is only good at the moment if you’ve used up your tax free interest allowance (£500 higher rate tax payer, £1000 for lower rate)

I’m interested in this! I’ll have a look. Thank you.

Take a look on Vanguard. Though personally I recommend Invesco perpetual accumulative growth UK fund. My great grandad left me 1500 20 years ago, in this fund it was worth 5000 when I cashed it in 12 years later. Seek financial advice, it will pay dividends literally.

Do not put it in the bank or do not put it in premium bonds. Basically a poor man's raffle. Comparative APR is around 1%, even the worst ISAs pay more than that now rates have gone up. Invested aggressively it should return at least 10 percent a year. And a decade before your eldest turns 18 (nearly) is plenty of time to ride out any turbulent markets.

Half into a SIPP (long term savungs) and half into a JISA (medium term) Both tax efficient. SiPP gets topped up for 20% tax free of charge by the Gov... Why wouldn't you.

Encourage them to add to each every year through other financial gifts, pocket money etc. I.also pay into my children's savings instead of giving them pocket money at the moment.

I disagree with keeping it in your name for lots of reasons but mainly it isn't yours to keep!!

As they are entitled to do….as it’s their money, not the OP’s.

I keep some money in pb because I need to access it quickly and I put tax money in it.

I don't keep it there to increase its value.

I have an s and s ISA.

I'd definitely invest it op, however wit the benefits situation they could loose money so be careful