what's the best way to save a £5000 inheritance for a child of 16 for 2.5 years.
Follow this topic
Q&A » Savings
Retweet
Comments (
FacebookComments (4)
-
159JoeEasedale postedThere is no "best way". The time period is too short and we live in strange times.
All you can do is spread it about and cross your fingers.
Possibilities.
£1000 each in Premium Savings Bonds. Gold Coin, Two year fixed rate deposit, One year fixed rate deposit, ftse 250 tracker.
Posted on 02 September 2010 |
Love 0 loves
Report
-
1petematthew posted
Sounds like quite a bit of hassle for five grand. You want to protect this money and get a half decent return. Given the short time scale I would advise you to find the best two year fixed rate deposit account and go with that. Check out Moneysupermarket.com or similar to find the best rate.
Posted on 02 September 2010 | Love 1 love
Report
-
824MikeGG1 posted
I assume that the child is not a taxpayer, so go for a high gross rate fixed term savings account and the child can complete a form R85 to get tax relief. That will be a 2 or 3 year term share.
The interest rate equivalent of premium bond prizes is much lower, so a non-taxpayer should ignore them. They are good for higher rate payers.
The period is too short for any form of equity in case of another fall and gold is much better for taxpayers as well as too volatile for a short period.
If the inheritance is from someone other than the child's parents, the money should not be put into an account in the parents name(s), nor should it go through the parents' accounts. An account should be set up in the name of oneor both parents re; the child's name or initials. That way they can use their own tax allowance rather than it being taxed as the parents' income.
Mike
Posted on 02 September 2010 | Love 2 loves
Report
-
0Benny the Cat posted
thanks everyone for replying - we're checking ut 2 year bonds and accounts at the moment - the return may be lower than spreading it about but in real terms there's not going to be a significant difference - we need fairly easy access to it....you've all given us something to think about adn we appreciate that you took the time to answer
Posted on 10 September 2010 | Love 0 loves
Report
Post an answer
Sign in or register to post an answer.
Something you're dying to ask... or answer?
Register with lovemoney.com to start asking and answering questions on Q&A.
Get started nowSign in for a better Q&A
Registered already? Great! You can just sign in to ask and answer questions.
Sign in