Savings for baby

[GemmeFatale]

We’d like to start a savings account of some sort for our baby. We anticipate him being given access to the money as an adult. Do we want an ISA? Premium bonds? Something else?

Not quite what you asked but I have a “Save the change account” so every card transaction is rounded up and saved for her which is a nice way to save her some money.

The interest rates on children’s ISAs are very good, possibly one of the best places to get something back for your money. You can get about 3.5% back at the moment and I’m sure the monthly limit works out about £350.

I tend to keep my money in premium bonds because they’re a little harder to access. In my mind they feel all tucked away in, not just in another bank account. They’re still easy to pay into and you can win relatively regularly even with a small amount in there. And obviously there is the chance you could win big! I’m happy to be corrected here but I think premium bonds are the safest place to keep your money - it’s all government run so nothing can happen to your money.

I've done both. Stocks and shares isa. In total sum of £1000 with £50 monthly. Grandparents opened a premium bonds account as well. They put money in whenever they feel like it

I have a standard saving accounts for DD because she is an August baby and I dont want her to have to wait until 18 to access the money if she wants it for uni etc. Martin Lewis usually has info on which banks have great rates. She is currently getting 4% with Halifax and when the rate drops I'll switch it for her.

Given you have close to 18yrs to invest, I would suggest a stocks and shares ISA, the growth will far outweigh any interest on cash accounts.

Just make sure you drip feed money in monthly (to offset peaks and troughs of stock market) and pick at least 2 or 3 funds to spread the risk.

Yes, he will be able to access at 18, but once in teens, get him involved in investing and discuss housing and uni costs - it should prevent him from blowing it all. My 2 are young adults with a large pot, some from us saving, most from an inheritance 3 yrs ago, neither are blowing it and both are keen to see their pot grow.

Junior ISA with money in different in funds is probably the best option.