Maturing CTF - what to do?

[Investinginthefuture]

DD has her CTF maturing in the near future when she turns 18. I set it up to pay for Uni fees. It has done quite well given my contribution level and is worth today £27k, so that’s enough to pay for the tuition element. She may go to Uni in September but she may also take a year out to reapply once she has grades in hand having missed out on a place at her first choice uni. The year would be self-funded with a job. I think we can probably get around 5% in a high-street savings account, but I wondered if anyone had ideas/advice as to anywhere else we could make the money work better for her?

In case it is relevant, she is also a beneficiary of my Mother’s estate and will probably get around £125K in the next 6 months. We have sort of ear-marked that for a house deposit when the time comes.

Thanks for any advice anyone has!

Over that timeframe cash with the best interest you can get is really your best bet.

Remember that it can be rolled into an ISA, don't just take it out of the CTF without thinking carefully about her ISA allowances. She will probably want to put her upcoming inheritance into an ISA over time (ie 20k per tax year), it may be worth thinking about starting longer term investment plans with this first bit and carving off what is needed in the shorter term, from the inheritance pot once it is received.

thanks both. I think we had thought about dripping some into a LISA and maybe some premium bonds but hadn’t considered a non-Lisa ISA.

Cash savings is best for that time frame.

You could look into building a savings ladder to maximise the interest on savings. This can also be utilised to avoid or at least minimise tax on the savings interest.

https://moneytothemasses.com/saving-for-your-future/investing/cash-savings-ladder-explained