A. A: There are a few options and the main thing which would influence the choices available would be how important it is for you to have the investment in your granddaughters name? If you're happy to hold the money in your own name, then on the assumption you're a UK tax-payer then you will have the full range of options from ISA,s Unit Trusts, Bank accounts and national savings available to you. The only real reasons not to go down this route would be if you already maximise your ISA and capital gains tax allowances on an annual basis or that you're concerned about inheritance tax in the future once the money is gifted to your grand daughter. If you want the money to be in your granddaughter's name this will be more restrictive as Junior ISAs or Child Trust funds won't be available, so a potential solution could be for you to open a unit trust in your name but to leave the benefits in trust to your granddaughter. Something like a bare trust would be the simplest trust and would mean the benefits would be taxed on your granddaughters situation and she would become entitled to the fund in full on her 18th birthday. An alternative would be a discretionary trust which would give more flexibility and control over when the money is passed over but is also more costly to set up. If you could please let me know a bit more detail about things such as how much money you're thinking of saving for her and the age of the grandchild I can be more specific.