Best account a grandparent can open to save for grandchildren’s education?

[Linguaphile]

We have inheritance coming in a few months that we would like to put the majority away in trust for our children’s education and/or future house deposits for them. However, as we are not domiciled in the UK (we are British but live abroad), we are finding it hard to open UK accounts for them. We would like to save in GBP as we hope to return to the UK for their secondary school and university. DH’s mother has said that she would be happy to open savings accounts on their behalf, but she is wondering where would be the best place to do that. Can a grandparent open something like a junior ISA on behalf of a grandchild? And is a junior ISA the best savings option, or are there better options she could/should look into?

We would ideally like something that we could also contribute to in some bulk on an annual basis.

Any guidance would be very helpful!

Apologies, that first sentence should read “and we would like to put away the majority”, not that.

I think with a JISA the money couldn’t be taken out until the child was 18

That’s good to know! We would want to access the funds at least for sixth form if not earlier, so I think it would need to be something accessible from age 16 at the latest. We would prefer to remain trustees of the funds (or her if she is the one who opens the account) rather than have the whole sum pass to them at that age.

DD has a Halifax regular saver account which has a high interest rate but can only save £100 a month, at the end of the year it is l transferred to another savings account with a lower rate but still comparatively ok. Only get the decent (ish) rate up to £5k so DD also has a virgin money account which has a reasonable interest rate too. I had to open all these though, my mum wanted to open something herself and the only one she could do were NS&I bonds but I don't think they exist anymore.

I'd suggest looking on money saving expert because all the best available rates etc are on there

Also all.of these accounts are in DD's name but I control them so if she needs driving lessons/ski trip money whatever I can access it.

Thanks @NoGoodPunsLeft. The initial contribution would be 5 figures per child, so we would need something with a slightly higher threshold. I’ve looked on money saving expert but they all seem to focus on accounts parents can open, and we need one that a grandparent can open. 😕

Just had a look, there are still savings bonds for children & grandparents can buy them. Up to £50k as well but the interest rate isn't great though But that might not be important:

Buy NS&I premium bonds for children Premium bonds are a popular investment option offered by National Savings & Investments (NS&I). You can buy any whole-pound amount of bonds between £25 and £50,000, and every month each £1 bond is entered into a prize draw. Then, when the child turns 16, they can have the premium bonds signed over to them. Pros: Parents and grandparents can buy premium bonds: unlike many savings accounts that only allow money to be paid in by parents, premium bonds are a great way for grandparents to put money away You could win £1m: every month, two lucky winners will get the jackpot. Many more will win prizes from £25 upwards Winnings are tax-free: even if you win £1m You can deposit up to £50,000: if you have a lot of money to deposit, but are restricted from the Junior Isa allowance and tax from savings interest, premium bonds could be answer It's fun: children are likely to enjoy checking their bond numbers each month to see if they've won Cons: You might not win any prizes: it's all down to chance; specifically, a 24,500 to 1 chance There's no savings interest: while NS&I says there's an equivalent 1.4% interest on premium bonds, this is an average over the millions of bonds in the pot, taking in someone who wins £1m on their £100 investment, and others who've won nothing on their £10,000

Read more: www.which.co.uk/money/savings-and-isas/savings-accounts/childrens-savings-accounts/best-ways-to-save-for-children-asgyc8d5nh2m#headline_3 - Which?

A grandparent could open a general investment account with, for example, a fund house like Fidelity, or a fund supermarket like Interactive Investor, and designate the account to a named child. Grandparent will be Trustee until child reaches 18. When you come back to the UK they could nominate you to replace them as Trustee if that was appropriate at the time.