OP, I'm not a financial adviser but I do know something about this stuff (and obviously this is general stuff, not advice).
General rule is, if you need it within five years don't invest, but if you do - invest or your money is likely to end up worth less than it was due to inflation.
So I would put a decent chunk in a Junior ISA for her - she can have £9000 a year in that and it will become an ISA when she turns 18 with the tax-free benefits that entails all thorugh- put that in a tracker fund, like Vanguard Lifestrategy - they come at various risk levels depending on the split of equity to bonds - 80pc is what you want for the long term stuff.
When she is 18, dripfeed £4000 a year into a Lifetime ISA as the government will add £1000 a year into that and she can use it for her first home.
Perhaps start a pension for her (google Junior SIPP) so that she can have even more money from the government each year and have a head start on retirement savings - £3600 a year is the max for that, but only £2880 comes from you and the rest from the government.
Premium Bonds are about to go down in value again - you can get better than an effective interest rate of 4pc on those - much less for most. There are some fixed rate cash bonds available at nearer 5pc for various durations.
Something like this (free 45 minute money coaching https://www.bestinvest.co.uk/coaching) might be worth having rather than a full on IFA. They are nothing to do with me, btw, but they are a reputable firm.