Saving 1k per month - Building society account or something else?

[netter]

I'm not asking for specific product recommendations but I need to start saving £1k per month (basically all of my salary) ASAP to cover school fees for two children form now until end of 6th form.

I could just put it into a building society account and increaste the amount I save each year according to inflation/my annual pay rise) but I reckon there must be a better way.

depends on the risk you want to take with it.. could invest it in an ISA so you pay no tax on interest - think this is for 3K per person .,.. then you could think about tracker funds etc... but like I say, depends on whether you can risk it..

I save a few 100 quid a month into premium bonds -- interest rates don;t mean much interest on savings accounts and this way means I keep my capital and have possibility of huge winnings!!

Definitely get a couple of grands worth of premium bonds. We only have £1k at the moment but usually get a couple of £50 wins per year which equates to a 10% interest rate (even 5% for one win isn't bad though). No guarantees of course but at least your capital is safe.
On top of that if you are risk averse then shop around for a decent high interest account. Otherwise on index tracker ISA could be a good bet.

Long long have you got before you need the money? I only ask as stock market investments are the best returns - IN THE LONG RUN, but they are not the safest. If you need the money now then some sort of Building society/bank with best poss interest

First 6k every year should definately go into cash ISA (one for you one for dh). After that it does depend on yoru timescale, but I would say at least some equity investment (but please not trackers in this environment).

You could alsosee if your chosen schools (if you've chosen them yet) offer some form of pre-payment plan. You get to pay significantly less now (because they discount back the fees you would pay in the future) and because you aren't actually earning any interest, you don't have to pay any tax.

I do think you should go to see an IFA, because there are other tax effecient ways of saving money taht is specifically for school fees, by opening trusts for example, but it can get quite complicated.