Where would you invest 14yo's £100k inheritance

[StiffyByngsDogBartholomew]

Dd has inherited just over £100k from my uncle. Solicitors are happy for it to be paid over to us and I will be managing it and the only one able to access it.
I will be looking at 85k in a high interest account or maybe bond but I am prepared to consider something a little riskier with the remaining £15k. Dd will be allowed £1000 per annum of the interest as we enjoy cultural travels together and this will help fund that or anything else significant she might want (eg PADI certification she wants to do). I want her to be able to enjoy a little bit of it now. That money would just go in her regular Yorkshire building society account and if she doesn't use it she will get 4%
it needs to remain as a two signatory account until she purchases her first house as this is what it is for and I want ti make sure she cannot access it.

It’s hers at 18 to do with what she wishes. The best thing you can be doing over the next 4 years is educating her about finance, compounding and how lucky she would be to have this as a deposit. She is of an age where she should be shown how you’re splitting the money and how you’re investing. You also need to have some serious discussions about how university would be funded if that is on the cards and whether the inheritance would be used for that or not, how you’d be approaching student loans etc.

Personally, I’d be trying to get it into stocks and shares isas so as much is sheltered as possible when she reaches adulthood. I’d also look to start a junior SIPP for her. Putting int 2880 would be topped to £3600. If you did it for 4 years and put now more money in, it could be worth £480k (assuming 7% returns per year) by the time she’s approaching retirement and no chance of her splurging it.

Im wanting to know the same - where are you getting interest rates of 10%

I think stocks and shares ISA are better but not consistently over a short time, Ive had shares doing well int he last 4 years but the dividend aren't paying out at 10%. Trading 212 has a cash ISA paying 4.9%

no-one is getting interest rates of 10 per cent, you're misreading a decimal point @MikeRafone

LivingLaVidaBabyShower

id read this ^ and wanted to know more

Get a proper trust deed set up and prevent her accessing the capital till she is at least 21 - you do NOT want a 18 year old spaffing it all on holidays and fast cars

Re - comments about individual Fund Managers.
Sunday Times 1December report that St James Place has closed a Property Fund, it will take up to 2 years to release the funds. But investors are very angry that they still have to pay the full amount of management fees. Property funds are allowed to freeze assets because it can take a longer time to sell them in the market. Other companies closed theirs for a few months and are now operating normally.
I had a meeting with my Fund Mgr yesterday, We have 18% profit on this year. Previous years have shown similar profits, not all sometimes half of that. He invests in equities, (shares listed on Stock Exchanges) currently biased to USA.

More details if you PM me.

Not a LISA just now, given that you think your daughter might want to buy in an expensive area: https://www.moneysavingexpert.com/news/2023/11/lifetime-isa-fix-martin-lewis-chancellor-first-time-buyers-fined/ This article is a year old but still accurate. Some first-time buyers in expensive areas have been stung by the scheme's failure to keep up with rising house prices, and end up paying a big penalty through no fault of their own.

That problem may get fixed, so keep an eye on it.

JSIPP - £2880 and again next April = £5.76K
JISA - £9000 and again next April = £18K

Educate yourself and self select a basket/balanced portfolio of funds. Hargreaves Lansdown is good for initial fund research purposes if you have actually no idea where to start. Personally, I don't believe that you need an IFA to choose initial funds to the value of less than £12K this tax year.

Premium Bonds - £50K very conservative place to park funds until you decide on other investments and to drip into JSIPP/JISA in future tax years beyond 2026.

£25K into high interest childrens' savings account/s.
Nationwide FlexOneSaver pays 5% but max of £5K
HSBC MySavings pays 3% but max of £3K
Or park the whole £25K in the
Family Building Society for 4.5% or
Yorkshire Building Society One Day for 4.45%

Leaving her to spend
£1.24K on laptop/phone/IPAD/bicycle/whatever this year.

These randoms giving advice and naming suspect companies are likely to make a problem worse. You need advice to get the best decision and avoid getting the blame if something goes wrong
Hargreaves Lansdowne who were cheer leaders for Neil Woodford, If I remember rightly. Avoid.
The Manager I use (see my previous) are Killik and they have several vids on YouTube.

My DS blew through his £10k trust fund in 1 year despite me strongly encouraging him to use it over his 3 years at uni to subsidise his life. 18 yr olds + £ = silly decisions for some.