Small, long term investment

[Slinky]

Folks,

I'm a dunce when it comes to matters of finance, so I'm looking to you for some advice..

Have a small inheritance inbound and want to put two £500 chunks away for my kids to receive when they're 18/21..

I've no idea where is best to invest/deposit it, so I'd be interested to hear your suggestions..

TIA..

[ShadownINja]

Can they have ISAs? Might be too young. Don't know the legal stuff. Just keep putting it into a new ISA every year (or whatever period is relevant).

[Beardy10]

ShadownINja said:

Can they have ISAs? Might be too young. Don't know the legal stuff. Just keep putting it into a new ISA every year (or whatever period is relevant).

No kids can't do ISA's. You could look at a Child Trust Fund ? Though be careful of the fees.

[plover]

I can recommend F&C as they have been doing child investments for a long time; I have/am saving for my nieces using them and even with the stock market over the last few years they are coming out with a nice lump sum.

Have a look at their Children's Investment Plan , you can request a brochure at that link. Minimum lump sum £250 and monthly saving from £25 a month.

[DonkeyApple]

Slinky said:

Folks,

I'm a dunce when it comes to matters of finance, so I'm looking to you for some advice..

Have a small inheritance inbound and want to put two £500 chunks away for my kids to receive when they're 18/21..

I've no idea where is best to invest/deposit it, so I'd be interested to hear your suggestions..

TIA..

If you intend to add to those sums over the years in regular installments then some form of investment plan would be worth following, however, a single and small one off payment of this type would almost be certainly better remaining in cash due to the enormous impact of fees and investment risk that would make it not worth investing in any other form.

[Gillet]

Bare Trust is an idea

http://www.hmrc.gov.uk/trusts/types/bare.htm

Basically you can invest the money on behalf of the child, you get all the statements etc and the account is in your name, BUT it is held in Trust for the child, including any income earned so you don't need to put it on any tax returns etc, then when the child turns 18 it automatically transfers over to the child.

Thats how it worked when I dealt with them 5 years ago, i believe.