Child/Baby Investment

[flowergirl2020]

Looking for some advice from anyone with a keen interest, precise experience or financial knowledge. Our 13 month old currently has just over £13,000 sat in an account in my name. This has come from money from Great Grandma who died just before he was born, monetary gifts from Grandparents, friends etc for birthday, christening plus money we put away each month (child benefit plus a top up)... where is the best place to invest this for him given we will continue to do all of the above?
I'm conscious that having it in specific children's investment vehicles will be better for him tax wise etc. but I know what they can be like at 18/21 so want to try to safe guard this pot for sensible use when he is older.

My gut tells me to split the money up to reduce some of the risk but I'm unsure what is best to get a good return also.

Thanks in advance xx

If you don't want them to access the money when they turn 18, I would continue to hold it in your name. Then you can choose when to give them the money- for a house deposit for example.

For long term growth, investing in the stock market in a low-cost diversified fund will give better returns than a savings account.

If you aren't using up all your 20k ISA allowance each year, I would put it in your ISA and earmark that for your DC. I would also put that in your will.

Low cost diversified funds are things like the hsbc global tracker fund, vanguard global all cap, VWRP. They are good for money you want to save long term. Year to year they could go up or down, but long term they should go up by more than inflation.

If you max out your yearly ISA of 20k it is a bit trickier. You can open a junior ISA for your child, but the money becomes theirs age 18. You can open a junior SIPP (pension) but they won't be able to access that until near retirement age.

Having the money in a savings account or premium bonds is fine short term, but will lose money with inflation, so is not the best strategy as you are planning to keep this money for 20 years plus.

@hopelesslydevotedtoGu thank you so much for taking the time to respond. Your suggestions are really helpful. I think going off your suggestions I may split the chunk we have so far between an ISA and a global tracker. Like you have mentioned I think having it in my name is the most secure way of keeping it ring fenced for sensible things xx thanks so much xx