Child investments

[neil-c]

My son was born a few weeks ago and we now have an envelope containing around £1000 from gifts. Where is the best place to invest?

Don't totally like the sound of child ISAs to be honest though may stick some in at some point.

A very generous grandparent also want to set up a standing order for £200 per month into an account for him. Any suggestions on where to put it would be gratefully received

[Gow3r]

Junior Isa is the option I am looking at, I too would be interested in what options there are!

[dalenorth]

Junior ISA with 10 plus differant funds, and maybe put 30% into premium bonds?

[neil-c]

dalenorth said:

Junior ISA with 10 plus differant funds

Sorry can you explain what you mean by the 10 plus different funds, never heard this term

[z4chris99]

you can place your cash with funds under the ISA scheme... different managers have different success etc

after fees etc I wouldn't bother. just put it with a nice 4% job and leave it be

[neil-c]

Still not sure I like the locked away nature of the child ISA for the full amount. I take it I could invest in a product like this

http://www2.firstdirect.com/1/2/savings/regular-sa...

I'm presuming as the monthly cash is from a grandparent there would be no tax payable?

[z4chris99]

gifts of upto 3kpa allowed from EACH grandparent

that savings account isn't bad at all,

if it's a kids account for when they are older will be fine to lock stuff away?

[TallMark]

I looked at Junior ISAs when my son was born, but ended up just putting money into premium bonds instead. I didn't like the fact that junior ISAs transfer completely to the child's name when they turn 18. Many 18 year olds when faced with a sudden lump sum will find it hard to use it all for its intended purpose rather than fritter large portions of it away.