Children inherited £27k each

[Goodmum1234]

My 6 and 10 yr old inherited 27k each from their late grandma, for them to have after 21 years of age. What with covid etc it is still sat in my back. Please could you suggest where I could invest/ put it.
I was thinking premium bonds or a children’s bank account but would appreciate your thoughts.

#bank

Children’s ISA (I think it’s a JISA?). Bank account will have zilch interest and premium bonds not a particularly good investment

www.moneysavingexpert.com/savings/junior-isa/

You’d have to invest it over two years - have you got the money sitting partially in an isa in your account at the moment? Or have you used up your allowance this tax year?

If you opened a JISA in their name then they’d be allowed to access it at 18, so depends on how strict the conditions of the will were. You could keep it in an account in your own name but that’s not terribly tax efficient or getting the best interest - you’ve got 11 and 15 years so you want to try and smash the compound interest.

A children's cash ISA will have a much higher rate than anything you can get yourself.

With 27k what about a stocks and shares ISA. You can only put about £4K in a year but a financial adviser may be able to set up investments so that the max allowance can be ISA wrapped every year.

Thank you all. I’ll look into this great advice.

@whiteroseredrose you can put £20K in a bog standard stocks and shares ISA. It’s only if it’s a LISA you’re limited to £4K.

@Dyrne isn't £20k the adult allowance? I thought children's ISA allowance was around £4-5k.

@whiteroseredrose yep, you’re right, having a complete blonde moment there!! My brain focused in on the “S&S ISA” part, rather than the “JISA” part

You need proper advice about the 18/21 age issue.

Also whether legally you can just hold it in your name.

See a financial adviser asap.

Just watch that wherever you put it still keeps the 'until age 21' bit.
You won't want them getting unfettered access age 18 (and it wouldn't be consistent with the will either).

One family also do junior bonds too, if you want to split the money some of the money which can be accessed at 21 or 25, but you can only put £270 away a year annually.

JISA limit is now £9k pa

OneFamily isn’t great for stocks & shares JISA as their fees aren’t very competitive. I shifted ours a few years ago as the fees wiped out the interest and my daughters funds were getting lower & lower. Really shop around. The OP needs financial advice though as the sums are over the tax thresholds and the 21 is tricky.

20 k in a stock and shares ISA in your name now - before 6 April
Another 20k added at start of new tax year in April
The smaller amounts to open 2 childrens ISA’s now
And transfer cash out of your ISA each tax year and pay into theirs.
If this is permitted you can grow and maximise the amounts.

If you’re allowed to do as swimmer suggests, the stocks and shares ISAs (adult) with Vanguard have relatively low fees/charges. Remember stocks & shares can go down as well as up. If you’re looking for a Junior cash ISA I think NSandI still has the best rate at 1.5% and max allowed in per year is still £9,000.

We are in this situation, I am going to set up trusts funds for all the grandkids and manage investments via a financial adviser. The one my my mum uses gets annual returns of between 5% and 12%, so the compound interest over ten years will be good.

My eldest inherited money for when they reached 25!! She needed it at 18 so we gabe it to her early