How to invest for 17 year old

[MyDogSmellsTerrible]

My DD has been given 20k to put in an isa by a relative.

Because she's 17 she can't open an adult isa, only a child one of (I think) 9k.

She can't open a fixed rate bond for 6 months or a year as she's not 18.

What can she do with the money?

Why not open a cash ISA with the highest rate rather than a 6mth bond.

Because she's 17 so can only open a child isa. And she can only put 9k in a child isa.

Or so I believe?

The internet says a 16/17 year old can contribute to an adult isa. But every cash isa I've looked at says you have to be over 18 to open an account.

Genuinely baffled 🤷‍♀️

It's 9k per year. So invest the max now, put the remainder in the highest interest savings account you can find, and then invest another £9k in April. She'll be 18 soon then it won't be an issue.

@MelodiousThunk

Thank you, I think I will have to do this. She's 18 in February so will only have a few weeks to wait until the new tax year.
I was hoping to make best use of current rates.

I don't know if a junior isa automatically becomes an adult isa on her 18 birthday. In which case I could put the rest in then, presumably at the same rate that she opens it with.

Cash ISA from age 16.
Stocks and Shares ISA from age 18.
Not sure about Lifetime ISA.
At 17, could have a S&S Junior ISA and a Cash ISA, £9k to JISA and £11k to Cash ISA.

At age 17 they probably don't pay a lot in tax, so do not need to use ISA wrapper for cash. They could use a bank savings account or could lock away using an NS&I Growth Bond (minimum age 16).

Various possibilities. I would consider when the money would likely be accessed.

JISA converts to an adult ISA usually but the provider will write to them to ask what they want to do with the money. Good time to consider some going to a Lifetime ISA for a future home deposit.

Another option, pension. A baby can have a pension. So a 17 can have one... they will be limited to paying in £2880 per tax year, unless they have an earned income.

Post Office has a Cash ISA available to a 17 year old. They have to call though, not apply online. www.postoffice.co.uk/savings-accounts/easy-access-cash-isa#:~:text=Please%20note%3A%20The%20tax%20advantages,a%20list%20of%20acceptable%20ID.

Does their current bank/building society provide a Cash ISA. It can sometimes be easier dealing with a provider who already knows their history, ID etc.

Santander has 5.2% Easy Saver - my 17yo has just opened one.

NS&I have a 6.2% 1 year bond. I am pretty sure it is 16+.

@Chasingsquirrels

Perfect, thank you! I think we'll stick it in the easy saver until February when she'll have a few more options.

Thank you all for your help 🙂