Best place for £3000 for new baby savings pls

simpywimpy

I want to put £3000 into an account for our new grandson but despite spending hours looking at different sites, I can't decide what is the best route to take.

I don't want to tie the money up until 18 but I don't mind fixing it for some time.

I would like the option to add to it if possible but doesn't matter if not.

I have seen some 5 yr bonds but would I be silly to consider this length?

simpywimpy

any ideas anyone please?

newbienewbison

I would say go the bond route maybe for a 1/2yr term. You can still get 4%+

Then have a look what the markets and rates look like at the end. With any luck the base rate may have been adjusted.

Hope that helps.

Energize

Fixed rate savings account or ISA if it yields a better rate. Short term though, interest rates will rise rapidly to stop inflation after the recession so you don't want to be stuck in a 4% account for 5 years.

simpywimpy

Thanks for that. I was thinking along the same lines about such a long term but it's helpful to hear someone else say the same.

simpywimpy

should I go for a normal savings in my or his dads name or a childrens one?