DS's Child Trust Fund

[MonkeyTennis34]

DS has recently turned 18 so is now in charge of his Child Trust Fund.

DH and I have contributed to it over the years and it's now worth £11K.

He'll hopefully be going to Uni in September 2025 and wants to use this money to support him there.

Where would be the best place to put it until then?

ISA?
I suggested Premium Bonds as I get a good return on mine.

Tia

Anyone??

Premium bonds isn't a bad thought although returns are going down in December and again in January. They are easy access. An ISA has no benefit as he probably won't be paying tax anyway. I would go for the best rate you can find easy access or multiple access a year savings account.

Edit: You might fit in a one year fixed rate before he starts if you can get a significantly better rate that way. Then switch to an easy access while he's drawing it down.

DD has only won £25 in over 20 years in her premium bonds. I’d put it in an easy access ISA

DD is in the same situation and has a really good savings account where it’s going to sit untl then.

Apologies for the gif no idea how it happened

As always, Martin Lewis explains the options well and has a roundup of the best rates available at the moment: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

Until recently there has been no point in getting an ISA if you're a non-taxpayer, because savings accounts offered better rates. But ISA rates are competitive just now, so it might still be worth looking at ISAs now.

I'd suggest that he should be willing to lock some of the money away for a while if that gives him a better rate. However, unless you are in a position to lend him some money, ideally he should have £1000-£2000 which he can access in August/September. Students often have cash flow problems around that time. Student Finance can get screwed up. Also, housing is a big challenge in some areas. If he ends up private renting, he may need a chunk of money up front for deposit and first month's rent.

Remember he can mix and match different products. It doesn't all have to go into a single account. For example, put some money into a one-year and/or two-year bond, and some into a limited-access account or easy-access account.

Thanks all.