Child investments

[nicename]

So DS is counting his piggy bank. He's up to £500 and counting (he's got more than me).

We set up a child trust fund when he was a baby (with the £250 they were giving out then) and have contributed a little to it over the years.

I was thinking about a junior ISA but seem to remember that you can't have a CTF and and ISA together.

He has a bank account but obviously the interest is pretty poor. Maybe buy some shares?

What do you think?

The answer really depends on what you want the money for, and when you will need to access it. You're right that you can't have a CTF and a Junior ISA (although there is a consultation on whether a CTF can be turned into a JISA). So your current options are something like:

Savings account - Easy access, but poor interest (below inflation)
Fixed rate savings - Slightly better rates, money tied up.
CTF - depends on what you've got, but no access until 18.
NS&I Childrens Bonus Bonds - Tend to be quite poor performing. 2.5%, tied up for 5 years. However, they are tax free, so they can make some sense if you're hitting the £100/yr interest problem.
Share based investments - better long term bet, but you'll need more than £500 really.
Stakeholder Pension - for the really far-out planner! No access until 55, but tax relief.

In your position, I'd probably stay with cash, but make sure I'm getting a reasonable rate. The current best buys (according to savings champion) are:

www.savingschampion.co.uk/best-buys/personal/childrens-accounts/#table