Premium Bonds or something else for grand child?

[skeggysteve]

Our first grand child arrived a couple of weeks ago and we want put a small amount of money (£100) into premium bonds for him.

But I thought I ask here if there was anything else (better?) you would suggest/recommend.

Thanks in advance.

[bitchstewie]

In the nicest possible way £100 is never going to turn into anything life changing but if you want the best likely return over the next 18 or so years I'd simply go with stocks either in some form of wrapper.

Gives the option of adding as and when too if that's something you might want to do.

[skeggysteve]

I understand that it's not a life changing amount but it's all we can afford at this point.

We thought of premium bonds because of the, slim, chance of prizes.

I don't like the idea of stocks because of fee involved and the possibility of the loses.

One other thought is tha t we could add to them on birthdays and christmas.

Edited by skeggysteve on Sunday 8th March 15:18

[bitchstewie]

skeggysteve said:

I understand that it's not a life changing amount but it's all we can afford at this point.

We thought of premium bonds because of the, slim, chance of prizes.

I don't like the idea of stocks because of fee involved and the possibility of the loses.

Sorry, awful wording on my part and absolutely no offence intended

I think perhaps what I should have said was that if you're interested in total return i.e. what should be worth the most at 18 then stocks are almost the only long term game IMO.

If you want something with the nice surprise of possible prizes along the way but not much by way of return I'm sure Premium Bonds are a sensible choice.

Sadly they just reduced their average rate along with most of the other NS&I products

[skeggysteve]

bhstewie said:

Sorry, absolutely no offence intended

(

Non taken I assure you.

[mikeiow]

I'd go with premium bonds for £100.

Sure, the 'average return rate' is rubbish, they are a relatively poor investment.....but unless you plan to add monthly to it, the chance of a big win is always there, it is a nice gesture, & they can always get the £100 out later!

We did that for nephews/nieces when they hit 18. Unlikely to be life changing, but then no single £100 will be, & at least with ERNIE, you never know!

[Tumbler]

We buy £100 of premium bonds for out great nephew every Birthday, if nothing else the pot should pay for driving lessons, he is now 11 and has had a couple of £50 wins.

[Cloudy147]

I like your idea of premium bonds. My parents (or grand parents, forget which) did the same for me when I was born. I had a tenner about 40 years ago. When I was old enough to understand what they were I thought it was really cool that I might have won something. I still have them now even though I've never won! BUT the capital is still there and I really enjoy the thought of what my grand/parents might have been thinking when they set it up.

Much like yourself.

Congratulations by the way!

[sociopath]

Put it in an s&s ISA and forget about it for 18 years.

[anonymous-user]

I was bought PB as a kid many years ago and enjoyed the thrill of checking the winners numbers in the paper each month so they’re a good option.

Personal I would be thinking of a pension. Yes really! Reasoning being that your grandkids are likely to be working til they’re 68 minimum. If all their birthday and Christmas money goes in to a pension, and they also save into it regularly then slowly but surely that retirement age will creep down. Plus the government adds 25% to whatever is put in.

More boring maybe but in the long term more of a lasting legacy.

https://www.moneywise.co.uk/pensions/manage-pensio...

Edited by anonymous-user on Monday 9th March 13:36