How can my son save cash for his two-year-old, which he can only access at 21?

17 May 2016


My son would like to start a savings account for this two-year-old son. He will open the account with £1,000 and then pay in £20 a week by direct debit. Ideally, he is looking for a long-term account that wouldn’t allow his son to access the money until he is 21. Is a Junior individual savings account (Jisa) the best option?



You are right in saying that a Junior Isa is one of the savings accounts to consider as these won’t allow access to the funds until your grandson is 18. But at that point the money belongs to the child, regardless of the circumstances, so it doesn’t quite fit the brief.

If your son wants to ensure that your grandson cannot access the money until he is 21, he may have to consider setting up a trust, but that could be prohibitively expensive given the amount he is looking to save. He’d need to speak to a solicitor if that’s an avenue he wants to explore.


Alternatively, he could save the money in his own name (using his own Isa allowance if it is available) and give it to his son when he is 21.There may be tax implications as a result of doing this.