Unit trusts for Grandson

[dancecaller]

Has anyone any advice about buying shares for my 2 yr old grandson. We have saved about £5,000 in a regular saver but the interest is pitiful after the first year.
Thought of a tracker, but it is hard to compare charges as all the websites seem different.
Are there tax implications if I ask my daughter to get it (in trust for him). She is a non-tax payer, her OH pays higher rate.

[ljdksa]

You can use Children's Bonus Bonds, via National Savings, Glasgow. There is a limit of £1000, I think, per 5-yr-phase, but good interest. I'll try and find a link.

[ljdksa]

Here it is:

http://www.nsandi.com/products/cbb

[dancecaller]

Thanks, I looked at that but the interest is not as good as NR's Little Rock account paying 3% with instant access. Even that doesn't match inflation though, so shares might be better.

[dancecaller]

And Yorkshire BS have a Chhild's Savings Bond fixed at 4.25% for 5 years

[ljdksa]

can't really help you with shares, but my children have these and they've done really well. Get regular bonuses on certain birthdays etc. Hope you find something suitable.

[ubasses]

Why not give your bank a call and ask to see the financial adviser. You are not committed to doing anything but they should explain your options to you and what any risks are.

[twix123]

Don't forget that a child can get their interest paid tax free by filling out a simple form.