Working in the financial industry for over 30 years, Rachel Thrussell is the leading independent expert on UK savings products. Her views are constantly in demand from both the industry and the press.
As a grandparent, I am looking at sensible ways of saving for two young grandchildren over at least a 15-year period. During this, regular sums of money would be added on occasions such as birthdays to build up a decent lump sum on maturity. Any suggestions?
The best option in this instance is likely to be a Junior ISA (JISA). Although a parent or guardian must open a JISA on behalf of their child, contributions can then be made by anyone – friend or family – up to the annual limit of £4,368 for this tax year. Lump sum and regular payments are both welcome. Coventry BS currently pays the market-leading cash Junior ISA rate of 3.60% yearly, with interest paid tax-free.
Parents take the management reins of a JISA until the child turns 16. However, it is not until the child’s 18th birthday, when a JISA automatically becomes an adult ISA, that money can be taken from an account.
|1 Year Fixed Rate Bond||1.42%|
|2 Year Fixed Rate Bond||1.56%|
|3 Year Fixed Rate Bond||1.76%|
|4 Year Fixed Rate Bond||2.07%|
|5 Year Fixed Rate Bond||2.09%|
|11 June 2019|
Subscribe for free
To receive Savers Friend every week, please sign up for your free subscription