Grandparent's Gifts?

Pippah45
Pippah45 Forum Participant Posts: 2,452
1000 Comments
edited November 2016 in General Chat #1

Can anyone help me with building up a little Savings Account for my Grandson?  I seem to remember the rules changing about opening accounts for a third party when my children were small - about 40 years ago!  My grandson  will be just one year old soon and
is in the US so it would seem sensible to set up some savings rather than send gifts I may get wrong!  Not to mention they are in a minute appartment etc etc.  I know the interest rates are rubbish - so might even go with Premium Bonds?  Suggestions very welcome
- thank you. 

Comments

  • brue
    brue Forum Participant Posts: 21,176 ✭✭✭✭✭
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    edited November 2016 #2

    What about this one Pippa, it's with
    NS&I.

  • Pippah45
    Pippah45 Forum Participant Posts: 2,452
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    edited November 2016 #3

    Thanks Brue - that looks good Smile

  • brue
    brue Forum Participant Posts: 21,176 ✭✭✭✭✭
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    edited November 2016 #4

    Fairly safe in the present climate, but probably others out there too.

  • Bakers2
    Bakers2 Forum Participant Posts: 8,195 ✭✭✭
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    edited November 2016 #5

    Not sure how you feel about your grandson getting the money in his own name and having withdrawal rights as he ages? You maybe able to do a child's ISA but would need to be looked into regarding  where he lives and conditions etc. I save for my granddaughters
    who live abroad after much consideration I save it in esavings (for ease at present) attached to my/our current account in our names, although both of my children know the accounts exist and they are listed as belonging to the girls on our comprehensive list
    of our investments (which is updated as and when accounts open and close, my son always laughs when I say you know where to find ..... When we've gone!)  This doesn't have tax benefits we pay any if appropriate, and its included in our estate at the end, but
    we retain control and can offer to help with big items if we wish and they wouldn't have full access to it at a defined age. May not be right for you but suits us. 

  • KjellNN
    KjellNN Club Member Posts: 8,669 ✭✭✭
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    edited November 2016 #6

    Unfortunately a Junior Isa can only be opened by a parent, so that is out.  Some of the Kids Regular Savers are good, you need a birth certificate to open one.  We did the Halifax one for our two.

    Now that interest rates are so poor, we are doing a child investment plan through Baillie Gifford (others are available) using a bare trust so the money will not be part of our estates.  You can stipulate the age they get access to the funds, and select
    trustees, we have ourselves plus their aunt.

    You can pay in a lump sum, or do it monthly, which spreads the risk.

  • redface
    redface Forum Participant Posts: 1,701
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    edited November 2016 #7

    It should be possible to open an ISA in your name and earmark the account 're ABC' or 'JKL' as appropriate - if you do not have your own ISA which has been fully funded for the current year.

    You do, of course, have full control of the account(s).

    I would suggest, as it is probably for the long term, a stocks and shares ISA. You will need to consider the degree of risk to be applied to the shares purchased. Generally speaking, stock and shares have outperformed interest rates over recent decades.

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