Best way of saving for child/adult

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DH and I have been saving regularly for DS (4), including Christmas and birthday money, by the time he reaches 18 there could be £70k in the account. My intention for this money is for HE or house deposit etc. Now I know that this money it technically his but I don’t want an 18 year old having access to this kind of money to piss up against a wall. I’m thinking of putting the money into a 5 year bond when he is 17 so that by the time the bond matures hopefully he will have matured too. Is this the best option or is there something else I could do?

This is 13 years ahead and you've no idea what interest rates will be at the time!!

he idea is good, but worry about the now - it is very difficult to keep money in savings accounts ahead of inflation (which is NOT zero). It could do much better invested IF you are prepared to take the risk.

Firstly, it's amazing that you are doing this for your son. God know's how much property will cost in 13 years time or even if he will want to pursue HE?

If it were me, I would start with Premium bonds as they are a safe investment (and I hate the thought of losing money through investments!). The max you can hold is £50000 I think and are entitled to a prize draw every month. This could be put into his name... or kept in yours?

In order to stop him "pissing it up the wall", it's important to obviously teach him the value of money as he grows up, particularly in his teen years. Even if you could afford to subsidise his teen-lifestyle, he should get a Saturday Job if possible to re-enforce those values!

Also, it would be very important to make clear to him that the money is only for the purposes you see fit.

I don't think there are any ways of preventing access at 18 without a trust.
Even a five year bond can be cashed in with loss of interest.

Plus, you need to make the saving tax efficient, and inflation- proof, otherwise the capital is eroded.

Save it in your names instead of his if you want to decide when he gets access to it.

If you save it in his name then, yes, he will get access to it when he is 18, and if it's the same as a Child Trust Fund, then he will get to decide how it's invested from 16, I think.

We have done a mix of saving some money for DS in his name, and the rest of our savings we are keeping as family savings, and will decide how to spend it as we go along. DS is our only child, and has autism, so we are far from clear when he will be able to live independently (probably 18 same as anybody else!).

Unless you have mega savings of your own, you will be able to save tax efficiently within your own allowances anyway.

premium bonds get eroded with inflation which I repeat is NOT zero. Flutter a few hundred quid by all means but don't let a large sum waste away like this.

It IS possible to get several year fixed bonds which cannot be accessed under any circumstances except death. But it is 13 years too soon to look at these.

you could always start a pension for him, although you can only pay in £2800 a year; currently this gets turned into £3600. That way under current law it is safe until he is 55!!

specialsubject when I suggested to DH that we start saving for DS's pension, he looked at me as if I were certifiable.

I think that's only a sensible idea once you're sure that you've provided for your own pension, and anything else you might need for you or your DC before they reach age 55.

It does grow really satisfyingly by age 55 on the predictor charts though, when you start at birth!

you're quite right - look after yourselves first, your 4 year old needs you!

but starting a pension for a child is not a totally insane idea.