DD16 has inherited £10k. What to do?

[GinForBreakfast]

She has no immediate need for the money (starting A Levels in September). Initially I thought a junior ISA but she has a S&S Child Trust Fund but you can't have both, and I don't want to put a lump sum into that.

Anything obvious we've missed? Just thinking of a savings account with the best possible interest rate, including locking some/all of it away for 1/2 years until she thinks about options post sixth form.

Premium bonds?

I did think premium bonds but winnings on a £10k holding could be very hit and miss... having said that I have £11k in PBs and I have won £525 so far this year.

I second premium bonds. My son has about 10k and in the last 6 months I counted up that he won £650! More than a savings account could make. However, it did take a while to start winning anything. But have been building the amount up in the account over the years.

I think you can open a pension fund for her? Otherwise I would max out the junior isa allowance (her trust fund) and then when she turns 18 start transferring it £4k at a time to a LISA and get a free £1k every year top up from the government (unless Labour scrap this free money scheme!) .

I would get her to research, to have a look at the Money Saving expert and see what she can find.
If she has / or could get a Nationwide teen account they have an attached savings account at 5%

You can open a SIPP for her, but then she won't have access until she's 60 and it could potentially impact any access to state help should she need it in the future.

I’m not sure about premium bonds - I’ve got £10.5k in mine and have made £250 over the last 2.5 years - well below the average return.

My kids’ stocks and shares ISAs are up 18% in the same period. If you don’t want to put it in her ISA I’d look for the best fixed rate savings account you can find.

Premium bonds would also be great as you don’t have to worry about keeping track of interest in case you have to pay tax like you would if the money was sitting in a high interest account outside an ISA wrapper

She’s a teenager - she isn’t going to need to worry about this as highly unlikely she’s earning above personal allowance.

Will she be wanting driving lessons and a car at 17? That all adds up. I think I would put in PBs for now as they can be easily withdrawn.

Transfer her CTF into a S&S JISA and put the £10K in. I did it as soon as it was possible for my DC back in 2015 to access a much wider breadth of investments.

This is a possibility, I just don't know if I have the headspace for it right now! The fear of making the wrong decision on S&S when she only has 15 months left to go on her CTF is real.

@clarrylove she has other savings that can be used for driving lessons and there's no plans for her to buy her own car, we have a small, old car that she can use for the first few years.

I agree with getting her to do some research on Money Saving Expert so that she learns about the available options.

National Savings certificates? Can't take them out early these days.

DD(17)'s JISA has gone up 27% in the last 15 mths and that's with it being up 30% until the last week! Her JISA will convert into an adult ISA when she reaches 18 like her older sibling's.

@sansou that's amazing. What is it?

DIY S&S. I've always gone for the top selling investment funds after conducting my own research. They have gone up & down over the years along with the volatility of the stock market but long term, they have delivered. I'm not a financial advisor so I'm not going to recommend any specific share/fund/IT. Educate yourself - I have been reading the financial sections of the weekend broadsheets for decades and there is plenty of online research. Good Luck.