Gifting money

[mrsnjw]

I have two children (16 and 14). A set of grandparents are kindly gifting them £5k each. We obviously want to invest until they are 18 so possibly off to uni etc. They both have a trust fund account worth about £4k. Is this the best place for their gifted money? Thank you.

yes, if they plan to spend the money on uni, then a child trust fund / junior ISA is fine.

If it’s in the child trust find / child ISA you have absolutely no control once they turn 18, they can withdraw it and spend every penny if they like - so that’s worth taking into consideration.

Some savings accounts may pay higher interest. Look at the Money Saving Expert website for the best deals.

Premium bonds?

Oh really? I trust my son to be sensible but I think my daughter would blow the lot in Zara and SHEIN 😳. I'll look into premium bonds and money website. Thank you 🙏