Lasting gift for your grandkids
GRANDPARENTS have a great excuse to change things around on the presents front this Christmas. They can give something that could last a lot longer than toys that break or are left collecting dust.
If the pandemic has taught us anything, it’s that having a savings safety net is vital.
Tony Fields, chartered financial planner at Jarrovian Wealth, says: “You can help give your grandchildren the very best financial start in life... this could be one of the best gifts you can ever give.”
Tony’s five ways to gift cash to grandchildren are:
1CHILDREN’S SAVINGS ACCOUNT
YOU can open a savings account in your grandchild’s name, as long as you have proof of their identity such as a birth certificate, and top this up whenever you wish. Interest on the child’s account won’t be taxed if all the money comes from a grandparent.
2PREMIUM BONDS
ANYONE can buy these for a child under the age of 16. You can buy online (nsandi.com) or by post and can purchase bonds from the value of £25 per child.
3JUNIOR ISA
ONLY parents or guardians can open a JISA for a child under the age of 16, but anyone can add to the account once it’s opened. Money grows tax free until the child reaches age 18, so perfect for help towards uni fees or a first home.
4PENSION
YOU can start saving towards your grandchild’s retirement via Junior SIPP (Self-Invested Personal Pension) from just after birth. You can put away up to £2,880 each tax year, boosted by up to £720 in relief to £3,600. These savings can be opened from £25 a month.
5SAVING TOGETHER
GRANDPARENTS and other wider family members can use services such as Offspring (offspring.co), a social savings tool that lets everyone chip in to save towards things you want or need.