As your grandchild grows up, you'll watch as their ambitions and dreams grow too. Wouldn't it be great to put some money away regularly that could grow with them?
Ways to invest for your grandchild
If you've decided to start investing, there are a couple of different ways for grandparents to do so. You could set aside some money yourself using your own tax allowance. Or you could also contribute to the Junior ISA your grandchild already has. Let's break it down a little more:
You can invest for your grandchildren using your own ISA allowance. This might be handy if your grandchild doesn't have a Junior ISA or if they've already used up their yearly allowance. It also puts you in control of when you give them the money.
Investment ISAs are medium to long term investments (5 or 10 years) that use the long-term growth potential of the stock market.
You can invest up to £20,000 in the 2020/2021 tax year. This is the total annual amount you can save or invest tax-free across all of your ISAs.
With a Scottish Friendly Investment ISA, you can start investing from just £10 a month.
With all of our ISAs, you can have a plan for each of your grandchildren - making it even easier to invest for their futures.
Remember the value of investments can go down as well as up, and you could get back less than you've paid in. Tax-free means the funds grow free from tax, with the exception of tax we've already paid on your behalf (such as dividends from UK shares).
Tax treatment depends on individual circumstances. Tax law may change in the future.