CTF at 18

[confusedctf]

Hi,
I really need some advice on what is the best thing to do now my child is about to turn 18 with CTF.
Currently only have around 3k in the NS&I ISA.
Should I move it with DS to a LISA?

DS expected to go to university in September and we will be funding him alongside him working etc.
Have deliberately not saved large amounts in his name for that reason. The CTF has basically a very small inheritance from a great aunt in it.

Do t want him to waist it though and would like it to be used eventually when he can add to it for flat/ house deposit.

My ds put some in a fixed bond and some in a cash ISA. Think dd did something similar.

So splitting it does sound sensible . Would a S&S ISA and Lisa be sensible?

Im not sure I'd choose a LISA as you have to use it for a house and withdrawing for any other reason incurs a penalty

So would a S&S ISA be best or cash ISA??

Stocks and shares will always outperform cash in the long term. You do have to leave it for a minimum of 5 to 10 years or preferably longer though to ride out any bumps along the way. Your son would have to think about how he wants to use the money and whether he wanted access to any of it in the next 5 years. If he does then that amount would be better kept in cash. If all he has is the 3K and isnt going to be in a position to save enough per year to pay tax on the interest he may be better just having what he is keeping in cash in a normal savings account that will probably attract a higher interest rate.

Exactly what rainbow unicorn has said.
The gov are looking at an alternative to a LISA as it’s not an amazing product sadly (esp in the south east of the country). Hopefully there’ll be a new better product he can invest in soon. A S&S ISA on a free platform invested in something adventurous would need to be left at least 5yrs. If there’s any chance he’ll need to dip into it he shouldn’t invest it, but save it in the highest interest rate he can find (maybe Cahoot). Savings are often better rates than cash ISAs and given he’ll be unlikely to earn enough to be paying tax on his £3k savings there’s little use in a tax wrapper. Have a chat with him as he maybe quite keen to leave it to grow in a S&S ISA over 5-10yrs.

Thank you.
He is looking at being at university for at least the next 4 years so certainly not going to be earning much for a while.
Will look into where the highest interest rates are for now.