How can I make the most of this money?

[Merryoldgoat]

My sons are 6 and 1. They’d aunt has very kindly been giving them some money for a while (£50 a month) into accounts in their names - I the trustee for both.

I feel like there must be a way to get a better return on the money but I’m not sure what?

Any ideas where I should look?

They’ve got about £1500 each right now. We don’t touch it and have no reason to.

Excuse typos - it’s been a very long weekend.

If you want to keep it in cash [[https://www.moneysavingexpert.com/savings/child-savings-tax-free/ best rates here]].

Sorry no advice but bumping !

Thank you.

It doesn’t necessarily need to be cash. The intention is it’s for them when they are older for something significant. Car/travelling/university etc.

Mini ISA?

Premium bonds?

I would tell them it was for a downpayment for a house, tbh. No choices given!

I would suggest looking at a Stocks and shares Junior ISA, one with low costs (look at Martin Lewis recommendations on money saving expert)

You have plenty of years for it to grow, especially if you drip feed what they already have into funds monthly, to smooth out the peaks and troughs of stock market, with more money added if you or the auntie intend giving more.

I would tell them it was for a downpayment for a house, tbh. No choices given!

I get quite annoyed when I read comments like this on here, especially the latter part. It is not possible to hide money from an 18yo, wherever you save it, despite many comments on here saying just don’t tell them. The financial institute will write directly to them as their birthday approaches and all access by parents will be stopped. So you can tell them whatever you like, they will have all the choice they want from their 18th birthday, as only they can touch the money!!!

From experience (DC 18 and 21 with a decent inheritance which they got at 18) the best route to make them appreciate the money is to involve them in managing it as early as you can. So maybe get young teens to start choosing funds with you if it’s held in stocks and shares, plus discuss house prices, deposits etc, so that they will hopefully agree it will be a house deposit. Mine have no interest in squandering it, in fact DS is becoming quite knowledgeable in fund selection.