I want to invest £15k in a savings account for my children - where will i get the best return over 6 - 8 years

Answer 1

But to let mortgage investment property absolutely without a doubt. Lenders will go as low as 11% deposit, which means you can purchase a property worth over £150k without an income test. Your return will be better than in any type of ISA or savings scheme, but if you would prefer one of these look at www.moneysupermarket.com

Answer 2

You will get the best GUARANTEED return in a good interest-bearing savings account. Over 8 years that will probably grow to something like £18k in today's money (assuming inflation + 2.5%)

I wouldn't consider trying to enter the property market on this kind of capital and with that investment objective, by the way: too illiquid, too many costs (solicitors' fees, stamp duty, estate agents' fees).

You will get the best AVERAGE return by investing in the equity market. For the inexperienced/occasional investor, I would recommend buying funds (where your money is pooled with other people's to give it more "muscle") rather than individual shares.

If it was me, I would get an account with a decent broker who will give you a sizeable discount off the charges on investing (so put in £3 to buying a copy of Shares magazine). Then I would split the lump, but not too much - maybe invest £5000 each in 3 different funds, in different market sectors: say, one in the UK, one in blue-chip (large cap) companies in the USA or mainland Europe, and one in "emerging markets", eg China or India.
Stock markets average inflation + 6% over many years and across many countries, so I'd hope that the two "safer" investments would each return about inflation + 4%, say, and that the riskier investment would give me inflation + 10% (risk tends to be rewarded). That would give my kids a total of £24k in today's money after 8 years.

Obviously returns on the stock market are not guaranteed, and past returns are not a guide to future performance (as the saying goes), but I'd hope those are reasonable estimates. For comparison, I have investments in emerging market funds which have more than doubled in only 3 years.

And of course to avoid paying some of your gain to the tax man, either put it in your kids' names or at very least use your ISA allowance - £7000 this year, then you should be able to move another £7000's worth in next year without incurring any tax, unless you have other capital gains. But note children under 16 don't have an ISA allowance.

Answer 3

The Halifax has a good one - but requires a regular payment amount going in. This might not be ideal for your purposes. The stock market might be a good place for some of the money if you fancied a little more risk and did some research of your own. The 6-8 year time horizon ought to ensure that this might offer much higher returns over time.

Answer 4

Theres no such thing as the best investment. Each one carries risks and the more your willing to take the higher your potential return is, as is your potential loss.

Answer 5

Invest wisely and your money will grow. Why not try some here where I'm also making money at the moment. It is great to share you know.

Answer 6

Seek advise from a good independent financial adviser. They will discuss your aims and most importantly your attitude to risk i.e. how much risk you want to take with the money. Look at www.moneyfax.biz

Answer 7

nicely i will make certain his factor - via fact technically to your son's account you would be putting interior the money too - so 2.50 from you and a pair of.50 from him. My question in spite of the undeniable fact that's that in case you have this baby component of the time and you're helping to boost her to boot - will it extremely kill you men to place an further 2.50 in for her for the sake of fairness? i think of many times that's bigoted. yet once you cope with it the place you provide them the money whilst they're older and at separate cases and all that it is going to no longer likely rely - she would be able to no longer know how lots she have been given vs. how lots he have been given. i think of that many times in spite of the undeniable fact that that's bigoted and you the two ought to attempt to maintain it a splash greater honest. cases are puzzling once you have step youngsters and it gets complicated adequate for babies without making options which will undoubtably reason injury thoughts later. it extremely is not the baby's fault they have been given divorced, and so she should not be made to sense inferior via fact he chosen to marry you and not stay with the mummy. the only way i will think of you all could make it honest is to talk to her mom and say you men could prefer to initiate an account for her and ask the mummy if she would be able to place some in and open it to the mummy to be waiting to accomplish that. For some reason if she is unwilling or no longer able i think of the bigger concern to do could be if so to place greater in to make it honest... yet attempt to artwork something out together with her mom first.

Answer 8

If you have that much money, would you not be better seeking independent financial advice from and Independent Financial Adviser (IFA)?

Answer 9

if you live in the uk why not buy premium bonds and then you may win something ,my friend is always winning on them