To withdraw dd's savings and spend them on....

[CatthiefKeith]

Premium Bonds?

She has around £600 in there, which equates to around £10 per year interest. She has accumulated this with Birthday and Christmas money (she is 4)

I have just bought her £100 of Premium bonds, and any winnings will be reinvested in more. Now I am considering chopping her savings in for more.

Is this a great idea or a really bad one? And why? I have never had Premium Bonds btw, so I am a bit clueless!

My preferred method is to spread my cash around. I have savings for DS in an ISA, a trust fund that is invested in stocks and shares and a few premium bonds.

The only investment in the trust fund is minimal (birthday cash only), any 'earnings' are reinvested and so far its doing better than the interest rate on the savings. The ISA is my contribution and every year I take a little out and invest in the bonds.

they are with different banks because of the savings protection thing and that old but apt piece of advice not to have all your eggs in one basket.

I have had premium bonds since I was born and have never won a penny. In 44 years.
Put the money in an ISA or something.