Child Investments for Niece

[ChilliSetter]

Hi, looking for some advice please.
My sister has a 2 year old girl that I would like to put some money aside for. Ideally under my control, mum's or eventually niece's.
Just for background niece's dad is in and out of their lives and not good with money so I want to put something aside that he can't help himself to.

Thanks in advance.

We invested in prize bonds for our nieces. They’re protected up to 100k (at least in Ireland) and they can cash them in once they get older.

It depends on how much you’re going to invest also. Anything more than 10k and I’d talk to an investment advisor.

Seriously long term - pension, as you can get pension tax relief for a child (Max £2880 per year contribution, grossed up to £3600). It doesn’t sound like you want something she can’t access until she’s 68 though!

There’s the Junior ISA up to £9K pa for 2020/21 (it’s around £5K this year). Tax free on interest. Can only be set up by parents, but anyone can then contribute. Downside -it’s hers at 18 and you can’t control it being wasted then. I personally wouldn’t for that reason - haven’t for my own child.

Honestly, I’d give premium bounds to an amount that is a nice gesture, with a nice (tiny but fun) chance of winning too. Then, I’d save separately in my own name (or mentally, in my own single savings pot) and be prepared to help financially when it was needed. I don’t save separately for my own child - I figure if I am putting my money into my pension, I get a better return (tax relief) than any children’s product. That makes me wealthier, and more able to help her later. Same with mortgage overpayments - the sooner I pay off my mortgage, the more I save, the better placed I am in 10 years time to tell with first car, uni, business loan, gap year travel...

Thanks for those responses, thats given me some food for thought. Much appreciated.