If you want to give a grandchild a gift of up to 9,000 euros, you have several options. As with small cash gifts, whatever those accounts may be, they could opt for a child savings account subject to savings tax. As such, a Cash Junior ISA may be a better option for those concerned about paying taxes on savings.
Up to £ 9,000 can be deposited into a JISA tax free for the 2021/22 tax year. Unlike a child savings account, money cannot be withdrawn from a JISA until the account is due when the child turns 18.
Another tax-free option is to deposit the money in premium bonds. Anyone can buy Premium Bonds for a child under 16, but the child’s parent or guardian must be informed as they will be contacted for proof of identity and address.
Premium bonds can be opened from as little as £ 25 and up to a total of £ 50,000 deposited. All of the money held in premium bonds is tax free. Although no interest is offered, each month all Premium Bond numbers are entered into a drawing to win cash prizes ranging from £ 1 million to £ 25.
