how best to invest 10K for my grandson who is 14years old he does not have any other investments
| Related: | Personal Finance•Investing•Money•ISAs•Other Investments•Savings Accounts•Share Dealing |
Answers (3)
hello jimcar
you can start by opening a Junior ISA which has a limit of ?3600. The rest you can either save in a childrens savings account or invest another ?3600 in April as next year's contribution for the junior ISA
Or you could buy him Premium Bonds with it. You never know he may get lucky. With interest rates so low these days they aren't a bad investment.
Premium bonds are good also safe...a chance to win on a monthly draw by Ernie ,,with many prizes.between ?1,000,000 down to ?25 ..The winnings can be added for more bonds upto ?30,000 .safe and worth a try..
Otherwise you can visit The building society or bank for childrens bonds from 1 year plus giving a good interest ...Children dont pay tax ...Obviously you could be checked for money laundering...using the childs account as a haven ,,,horrible thought but it happens.
Actually, rosetta, children do pay tax. They have their own personal tax allowance of ?7,475 for the current tax year 2011-2012. Below this amount, they can receive their interest without tax being deducted if a parent or guardian completes an HMRC R85 form and gives it to the account provider.
Also, If I remember correctly, any interest earned on savings in a Child's account that is given to them by their parent, should not exceed ?100 per year per parent. If it exceeds this limit, the interest is taxed at the parent's highest rate.
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