NS&I - Children's Bonus Bonds/Premium Bonds or Investment???

Tomzy0305

I've been trawling the internet to find a good savings scheme for my children and am completely bamboozled!! I like the idea of the NS & I savings through the Post office as they offfer a good level of financial security. My children's grandparents want to give them £3000 per year (on their birthday) until they are 18yrs old to go towards further education (or home if they don't make the grade!) so I'll be investing once a year. I'm not sure though which would be the best option for them - Bonus Bonds/Premiuim Bonds or Investment. The savings will be for long term as the children are only 6 and 5 at the moment.
Any advice (reasonable) would be appreciated!

Reaper

Can't say I'm very enthusiatic about NS&I Children's bonds as the 2.5% interest rate doesn't even keep up with current inflation.

I favour investments because they should outperform savings over the long term and you are certainly looking at the long term.

For my kid I set one up in Trust with us as Trustees (the ones who manage it on behalf of the child). Often the grandparents set these up directly themselves. If you choose to go down that route I can tell you more.