Savings for children.

Miss_J

I have two children aged 7 and 4. My 4 year old was eligble for the £250 child trust fund payment which I used to open a saving account with the Friendly society. It is a low risk stocks and shares type account and I make a regular payment of £20 a month into the account, we can also make further deposists through the year. My 7 year doesn't have any type of saving account, I have been a full time student for the last 3 years so didn't have the finances to make a regular commitment to a monthly payment. However I would now like to open an account with the hope of building up a little pot to help her when she turns 18.

I had always intended to open an account for her with the Friendly society, which like the trust fund account is a low risk stocks and shares account, however I'm wondering if this is the best option for her. I'm aware of the fact that there isn't as much time for it to accumulate in value like her sisters and will make higher payments each month to her account but wondered what the general consensus was on childrens accounts at the moment.

Can anyone give me any good advice?

Many thanks