Best savings account for my grandson.

Add comment | Report | Private message Jo61 Wed 15-Jan-20 07:51:01
Thanks bluebells, yes you're right, the thread was about saving plans for grandchildren so was caught out actually!! Haha x

I am
While not disagreeing with the sentiment, why is this on “Savings plans” and “Meet-ups” ?

I don't think Junior Stocks and Shares ISA's have to be cashed in when the child becomes 18. This from www.moneysupermarket.com:

'Any money held in a Junior ISA is automatically rolled over into a normal ISA once the child reaches the age of 18 so it will remain tax-free. The child can then continue saving or spend the money as they wish.'

Premium bonds are not available to children. We opened an NS&I ISA for our grandchild and pay into it monthly.

Premium bonds are available to children under 16 but the account must be managed by a parent or nominated guardian. Grandparents or others can buy premium bonds for children under 16, held in such an account. Where the children are foreign nationals, it is complicated. If in doubt, ring NS&I on 08085 007 007.

Of course, you might question whether you want a grand-child to win £1m, particularly if, like me, you have 3 grand-daughters and the thought of just one winning £1m and the others picking up £25 every now and again could be problematical!

For what it is worth, I contribute to a Junior Stocks & Shares ISAs for my grandchildren. These are opened in a child's name but operated by parent or guardian. Any money given belongs to the child and cannot be repaid. There are risks in stocks and shares but, for a long term investment, I think this is the best option. I have favoured investment trusts that invest in smaller companies at home and abroad. If the funds gets big enough, I will spread the risk and try to diversify. This is not a recommendation, just me sharing what seems sensible to me.

Sadly, index-linked savings certificates are no longer available from NS&I. When they were, they were the best bet around, providing a real return guaranteed by HM Treasury. Adults can still roll over existing Certificates but children had to cash out or switch to another NS&I product. Great shame!

Thanks Jane a I've now found the thread.

Cunco re children’s ISAs - you are right if the children are UK nationals, but mine are American and that’s why the restriction applied.

As Cunco said, beware of buying Premium bonds for children! Apparently 13 children have won the
£1 million prize. Imagine the effect on siblings!

Jeanainsworth: You obviously know your own case much better than me. I was unaware that a non-UK resident child could even own a Junior ISA. The government website www.gov.uk/junior-individual-savings-accounts says:

If your child lives outside the UK, your child can only get a Junior ISA if both the following apply:

a. you’re a Crown servant (in the UK’s armed forces, diplomatic service or overseas civil service, for example)

b. they depend on you for care.

If you are an adult who moves abroad, I think you can keep your existing ISA but not add further contributions while you are abroad.'

Re premium bonds for overseas grandchildren, I wasn't aware that it wasn't possible to purchase them on their behalf.
I assumed it would be possible because the site often quotes the winners as living 'Overseas'.

Presumably it's possible if they have dual nationality?

My DC always said they would share the million £1m prize if one of them won before they were 21.
However, they never had to put that to the test.

Callistemon: I think you can buy premium bonds for grandchildren in most overseas countries but they must have an NS&I account administered by a parent or guardian. I understand the USA is a special case because its tax and gambling laws would prevent a child holding premium bonds. I do not think the nationality of the child is a factor but the local rules where it is resident is a factor. If you wish to find out more, just call NS & I on 08085 007 007. It's free and always available. Just so you know, I am not agent for NS&I.

Thank you Cunco

It wouldn't be many so probably they'd have no chance of winning.

Do you want one they can manage?