The Lemon Fool

Hi,
Mrs B asked about a Savings A/c for for our soon to be granddaughter. We are not talking about putting in large amounts of money, rather drippping it over time. Something that will help in 'University' years if that what she chooses. Don't want complexity or excessive restrictions just something that our friend compound interest will work on.
Any suggestions?
Ray.

I've no particular suggestions I confess, but as a very general observation, and of course one that you may of course choose to totally ignore, do consider if you do this whether you will do "the same" for any future grandchildren also. I only say this as many many moons ago good friends of the family decided to pay for musical instrument lessons for their first grandchild through to age 16 or whatever.

Six grandchildren later, all born within a very few years of each other (across their own three children) they realised it was actually costing them a significant sum every month to treat every grandchild "the same"!

As I said - you can obviously ignore my thoughts entirely

Their is a JISA thread somewhere, and for the period you are looking at then equities will more than likely outperform cash (and there are a lot of people on these boards thinking the same:) ).

Consequently one of the many JISAs out there. Hargreaves Lansdowne have just removed all their fees for a JISA, and you can contribute regularly from £25/month into a huge choice of assets (and they do a Cash offering although I haven't looked ino it).

We have a handful of HL JISAs for great nieces and nephews (the ones under 18 years old), once set up by the parent/guardian they just tick away as "gifts out of income" so no IHT worries (and they're within our £3k pa limits anyway). It cannot be touched by their parent/guardian, and they get full access at age 18.

The latter part is also to see how they cope with a large chunk of money. If they decide to use it to fund higher education then all well and good, but if they splurge it on the fastest motorcycle they can find and then struggle to insure and run it then I can rest easy knowing they'll turn out like I did. Probably much to their parent's dismay

Paul

didds wrote:I've no particular suggestions I confess, but as a very general observation, and of course one that you may of course choose to totally ignore, do consider if you do this whether you will do "the same" for any future grandchildren also. I only say this as many many moons ago good friends of the family decided to pay for musical instrument lessons for their first grandchild through to age 16 or whatever.

Six grandchildren later, all born within a very few years of each other (across their own three children) they realised it was actually costing them a significant sum every month to treat every grandchild "the same"!

As I said - you can obviously ignore my thoughts entirely

I can feel for them. I have five granddaughters!

Dod

FYI the Junior ISA allowance is £9,000 for 23/24 tax year.

DrFfybes wrote:Their is a JISA thread somewhere, and for the period you are looking at then equities will more than likely outperform cash (and there are a lot of people on these boards thinking the same

That chimes with my thoughts. This thread? https://lemonfool.co.uk/viewtopic.php?f ... SA#p639175
Although the question was about building society cash savings account like all questions it's inevitable keen readers will suggest the questioner doesn't want to ask that but ask something else.
So I was gong to mention equities and inflation, also there is a tax implication for interest savings and of course the JISA side steps that too.