I am a non tax payer, and we save money for the kids in my name in a high interest (Ha!) long term account...
what we have done is save the child benefit in an account with reasonable interest until it built up to 2 or 3 thousand, then put it in a 3 year account -last one was Nationwide at 4.7% (3 years ago in March - painful that the interest rate is going to be so low for the next one!!) and every 3 years (DD1 - eldest - is now 12) - we amalgamate the monthly savings into the next 3 year fixed term fixed interest. We always do the 3 years from March as that is when the best fixed rate, fixed term interest rate offers come out...
don't ever (imo) add money to a trust fund account. Open a separate account. Trust fund money will be transferred to the child at 18 no matter how you feel about that & will be theirs to control/spend however they please.
The Halifax one is a monthly one, max £100 per month. Each year it needs to be reviewed but it's about the best percentage on the market. Our 5 year child's savings bind is at the yorks bank and is 4.25% interest but you have to leave it and can add to it etc. just look money supermarket.com for the best for you.
We just did 10 quid per month into. ctf for ds1. I keep getting letters about more money in but as the Child is responsible for he money when it matures we werent keen to have thousands of pounds in an account that you as the parent have no control over. Same with junior ISA's.
So we just have a kids regular saver at the Halifax and when there was a decent amount after a few years I transferred it to a 5 year bond. I just check money supermarket regularly for good deals.
I expect this has been done to death but I'm desperate for some guidance. Ds1 has a CTF stakeholder account. We were given £50 from Govt and nothing has been added because I'm worry it might become worthless, given that CTFs have been scrapped. Dc2 is due any minute and I imagine we'll open a jnr ISA for him/her. But in the meantime I have fed nothing for DS1 (2yrs old). Is anyone else in this position? Is it worth putting money into the CTF or should I open a eggar savings account? I hate to think that I hacen't started some savings for my children, it's actually keeping me awake. Fwiw DH reckons savings are a worthless distraction as money is becoming worth less all the time but I can't reconcile myself fully wi that philosophy. Please help.