Premium bonds or saving for a child

[orangelotus]

I want to set up a regular savings account for my grandchild. Tempted to do premium bonds for the fun of it but would it be better to do a regular savings account. Probs do £50 per month

Why don't you split it both ways? Then there is a chance of a big win

Oh that's a great idea!

PB are good, but I'd consider what you'd plan to do if you have more than one GC (if that's likely to happen). Would you be ok if one of them won big & the other didn't win anything? Some people are happy with this! Others aren't. Just something to consider x

I'd leave that up to their parents- but wouldn't that be a delicious problem to have???

I'd invest in a Stocks and Shares ISA as the long term returns will be better than in cash savings.

Quite! I wasn't trying to put you off, just throwing it into the ring.

If you want long term growth, stocks & shares ISA is best. However it's either in your name (using your allowance) or theirs (giving them access at 18, which you might want to limit).

PB are a safe place, but at average return of 4% (give or take), you can actually beat that in a guaranteed return savings account at the moment!!

Once interest rates come down, PB might be a better option.

Even with this, PB are nice because you don't have to manage them, it's a fun idea + you're not shuffling money around. It's safe & fine! So up to you & your priorities.

My mum's grandmother bought her a £1 bond when she was born in the 60s. Never won anything (or indeed knew about it!) + a couple of months ago won a decent prize lol.