best place to invest windfall for baby

[flotsamandjetsam]

Sorry if this has been covered ad-infintum.... We've come into a small amount of money and I want to invest £3000 of it for my Ds's future (possibly university fees). Where is currently the best place? If an ISA, which one? Many thanks in advance

You could opt for a Junior Cash ISA or, if you don't mind a little long-term risk, a Junior Stocks and Shares ISA. Several companies are offering them at the moment and I have a stocks and shares one with Family Investments. You could put it in a 3- 5 year bond which are available at a lot of banks and building societies. They tend to pay better interest than ordinary savings accounts and then you reinvest when it matures. If you keep an eye on the National Savings website, they were offering a great product last year which was an index-linked bond guaranteed to beat inflation. They might reissue them. Some straight savings accounts are offering good interest rates short-term. If you don't mind keep changing accounts to get good rates, they may be something to consider

If you opt for a product with interest that isn't tax-free e.g. a savings account, make sure the provider knows that it's for a non-tax-paying child and fill in a form so that tax isn't deducted from the interest.

Cogito, thanks so much for your excellent advice. I think I may be brave and try the Junior Stocks ISA but will also look at National Savings site - both of which I hadn't heard of, so big thanks.