Special Notice:

On 19 February 2021, the Financial Conduct Authority (FCA) immediately placed restrictions on Raedex Consortium Limited, the parent company of Buy2LetCars Limited. Raedex is not permitted to enter into any new vehicle lease agreements until such time as the FCA removes this restriction. As a result of these restrictions, Buy2LetCars Limited is not currently accepting any new investment. Raedex understands the importance of its regulatory obligations and will continue to be open and cooperative with the FCA in attempting to resolve these issues. We are currently discussing our accounts with the FCA and are confident that these discussions will result in a positive conclusion. These discussions do not affect any investments that are in place.

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Investing For Your Children’s Future

Investing For Your Children’s Future

We all want the best for our kids, to prepare them as best as we can for the future. One of the best ways to do this is to ensure their financial security from a young age through investing for your child’s future.

As the cost of university, houses and general living only proceeds to ascend now is more important than ever to start investing for your children. 

Whether preparing funds to enable them to start their early adult life comfortably, or to teach them the basics of saving and investing from an early age – investing for your child’s future can prove invaluable. 

Why Invest For Your Child?

Investing for kids can seem so far away, leading you to the conclusion you can look at it later, or even that you’ll have the money when the time comes. However, with the cost of living climbing, it’s important to get a head start on investing for your child’s future.

Even a small amount of money tucked away, given the right springboard can turn into a considerable nest egg with the proper time and treatment. With investing it truly is the sooner the better.

Here are some reasons why you should invest for your child:

  • Support their early adult years, funding education, travelling, the possibilities are endless
  • Help them get started on the property ladder with a hefty deposit
  • Reduce the uncertainty, even if the money isn’t for a specific purpose it’s still nice to have savings in case they’re needed later down the road
  • Investing for kids can help them to understand the basics of investing, saving and money management from an early age

It’s important to mention that due to the nature of investing for children, these investments are built for the long-term. 

Which is great as it means that your money has more time to grow, but at the same time is more susceptible to inflation. Meaning inflation-proof investments or hedge funds can be your friend.

Here are some investment options that can help build a brighter future for your children.

Investing For Children: What Are My Options?

If you’re new to investing or are looking for a refresher, we’ve put together a beginners guide to investing to help with just that. 

When it comes to investing, there are seemingly endless routes to go down. From short term investments to passive income investments, it can be quite difficult to pinpoint the best investment option for your child. 

We have compiled an extensive list of child investment options to help you make a more informed decision about your child’s future. 

Junior ISAs (JISAs)

Junior ISAs (or Junior Individual Savings Accounts) are exactly as the name implies, long-term, tax-free savings accounts for children. 

There are two different types of Junior ISAs; cash and stocks & shares. Your child is able to have both types of Junior ISAs at the same time.

While cash JISAs you will not have to pay tax on the interest that is generated, the stocks and shares are equally as useful because the income is free from any liability to capital gains and income tax. 

If you’re looking to open a Junior ISA and you already have a Child Trust Fund open, you will have to close the CTF and transfer the money to the new account.

While a parent or guardian must open the account, the actual money and interest generated are owned by the child. The child can take control of the account at 16, but cannot withdraw until they are 18 years old.

The saving limit for a Junior ISA for the 2020 -2021 tax year is £9,000 which if you’re investing a lump sum for a child may not be suitable. 

Child Trust Funds (CTFs)

A Child Trust Fund was a child savings account, we say ‘was’ because new CTFs were seized from opening from January 2nd, 2011. They have since been replaced with Junior ISAs. 

If you have an open account with a Child Trust Fund and you didn’t transfer your money to a Junior ISA before April 2015 – once your child turns 18 they’ll be able to withdraw the money from the CTF. 

NS&I Premium Bonds

NS&I Premium Bonds are a slight deviation from the traditional savings account covered so far, these bonds essentially enter you into a raffle each month with a chance to win between £25 and £1 Million tax-free. 

NS&I Premium Bonds are a great option to invest for your child, as this is a fairly hands-free investment – choosing between having the money transferred into the bank or reinvested (with no involvement on your part). 

So much so, they not only make good choices for investing for kids but also investing for monthly income, if you’re looking for guaranteed returns or worried about inflation. 

The best part? Anyone can buy NS&I Premium Bonds, you can buy them for yourself, for your children, for your grandchildren etc. These bonds are also backed by HM Treasury so all the money is 100% secure.

The only downside is that NS&I Premium Bonds have a limit of £50,000 – so if you’re looking to generate a more sizable contribution you’d have to look elsewhere or open a separate account under another individual.


A trust is a fiduciary arrangement in which one or more ‘trustee’ is made legally responsible for holding onto asset(s) on someone else’s behalf (beneficiary). 

In this case, it would be a child or grandchild who would be the beneficiary, and the parent, auntie, uncle, grandparents would look after the investment as the ‘trustee’.

These assets can be vast and varied in nature, property, antiques, cars, gold, money, shares etc. The main thing to take into account is that the account is put in place for the beneficiary and managed by the trustees and a ‘settlor’. 

There are two types of trusts available; bare trusts and discretionary trusts. Bare trusts enable the beneficiary to access the money when they turn 18, while discretionary trusts allow the trustees to make decisions about the money i.e. how much is paid out and when.

Investing In Car Leasing

Car leasing may seem like a slightly odd suggestion when discussing investing for children, but in fact, it stands its ground against some of the more prominent child’s investment future plans.

Investing in car leasing works best when partnered with a lengthy period of time. The investment period for car leasing is three years, and with no limit as to how many vehicles you’re able to purchase it can prove rather profitable. Alongside the fact that it’s encouraged that your money is reinvested to grow it even further. 

Car leasing as an investment generates both monthly income as well as a considerable chunk at the end of the contract. The earnings are high yielding, have had zero defaults and are socially responsible

So whether you’re investing £10K or £100K, why not consider car leasing?

Investing For Grandchildren?

There are certain rules that apply to parents but are exempt from grandparents and vice versa when it comes to investing for kids. It’s important to understand these differences to be able to plan what you’re able to do for your grandchildren opposed to your children. 

First of all, certain savings accounts such as Junior ISAs can only be set up by a parent or guardian so while you invest for your grandchildren, the initial account will need to be set up by someone else. 

In certain circumstances, it actually benefits the child to have the grandparents invest for them. A savings account is one of those situations, if you’re not fussed about opening up a Junior ISA – a standard savings account can do the job just as well. 

Children are subjected to the same tax allowance as their parents, which for the financial year 2020 – 2021 is £12,500. Which means if the interest in your child’s account exceeds £100 in any given year you will have to pay the normal income tax rate – unless it’s in a JISA.

This rule is exempt to grandparents and other relatives, meaning you can seek other more lucrative savings accounts opposed to the standard Junior ISA. 

Investing A Lump Sum For A Child?

If you’re looking to invest a lump sum for a child, whether your child or grandchild this can differ slightly from the generic investing for children model we’ve discussed. With some child’s investment future plans either the input amount or return can be capped for a variety of reasons, seen in NS&I Premium Bonds and savings accounts with income tax. 

Investing a lump sum for a child requires a different approach, one that allows for a larger investment from the word go. There are two investment options mentioned that meet those criteria; trust funds and car leasing. 

Since trust funds can cover essentially any type of assets, property, antiques, gold etc. it makes investing a lump sum much easier. Property especially can be bought using a lump sum and either rented out or resold to generate a return. 

Car leasing is the ultimate ‘investing a lump sum’ model that rewards this type of investment especially. Investing through car leasing has no cap to how much you can invest, these generate both a residual income and a lump sum at the end making it easier to reinvest when the time comes.


Why Should You Invest With Buy2LetCars For Your Child’s Future?

At Buy2LetCars we’re extremely passionate about what we do, and that includes seeing that our customers generate the most out of their money. Our investment model is proven, reliable and lucrative as backed up by 150+ 5-star TrustPilot reviews.

Investing with Buy2LetCars is as simple as 1, 2, 3. Simply invest a minimum of £7,000 over a period of three years, in which time you’ll receive both monthly instalments and a lump sum in the last month.

The rate of IRR% is calculated based on how much you’re investing, meaning the more you invest the more you can make. With interest rates between 7-11% per annum, what’s not to like?

1) Zero Defaults

One of the first things that may pop into your head when investing is going to be the risk involved. While this can differ between different investments, here at Buy2LetCars we have never had a payment default. 

Our business model is built around transparency, in that our customers are 100% informed about where their money is going, how much they’re making and the overall process. 

With a zero default rate, our investments are tried, tested and parent-approved. 

2) Strong, Reliable Earnings

When investing for your kids, you’re not just investing for yourself, you’re investing for them – to build a bright future for them. Which means the more you’re able to build your money, the more you’re able to fund their transition into adulthood. 

The rate at which your investments grow is determined at the beginning of the contract, this is between 7% and 11% depending on how much has been invested. This figure is locked in and will be constant throughout, despite external factors such as inflation. 

When compared to other investment options such as savings accounts and ISAs, car leasing is able to provide much higher returns while proving to be much less demanding. 

3) No Hassle

When you think about investing in car leasing, you’re probably thinking that it would take up a lot of your time and be hard work, right? Wrong. 

Our investments are what we like to call ‘hands-off’ or hassle-free investments, we manage all the nitty-gritty details so you don’t have to. The only thing you have to do is watch the money pour into your account each month, and that’s it.

Many of our investors have realised that B2LC is one of the best ways to invest for your children or grandchildren. So, if you’re looking to be able to give your child a head start in life or just simply put away money for a rainy day – it all starts with investing. 

What Investments Do We Offer?

Our investments begin at £7,000 and work all the way up to £100,000 plus. Of course, you’re free to invest whatever amount works for you. Whether you’re investing £10K, £30K or even £50K we provide you with interest from 7-11% IRR. 

Using our returns calculator, you can work out exactly how much your money can make.

Child’s Future Investment Plans With Buy2LetCars

Buy2LetCars offers investments that are sure to put a smile on your face. Our investments are tried and tested and backed up by all our satisfied customers. Why not see if investing for children through car leasing is right for you?

If you are interested in our investment opportunities, contact our team today on 0203 823 1032, or get in touch using our enquiries form. If you prefer a face to face chat, come and meet us at our walk-in centre, found at 1 Bell Parade, Glebe Way, West Wickham, BR4 0RH.

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