New baby-best way to save money

summer1982

We don't have a lot of spare money but really want to start putting some away for our new baby, it won't be a lot, probably about £10 per month but by the time she is 16 there should be enough for driving lessons/small car etc.

But I read there are many ways of putting money away and a bank account is the least favourite.

If you had to invest in shares, what would be a good/safe bet for the next 16 years?

Bloomin_Freezing2

Did you get a 250 voucher when she was born? Where did you put that? I've put both mine into savings accounts (not sure what exactly without reading all the paperwork). They can't touch them til they are 18 mind you. They also have saving bonds and premium bonds.

McKneff

Halifax do a 6% childrens savings account. I havent seen a better one than that.

clw1

You can obviously put money into a child's trust fund however we have not done this as I do not like the idea of my son getting a large lump sum at 18 in his name alone as he might waste it on beer / clothes. So instead we put money aside into a bank account in our name so that we have some control over what it gets spent on when the time comes.

You could use something like an ISA if you don't already use your allowance.

Mk14:37

Bloomin_Freezing2 wrote: »

Did you get a 250 voucher when she was born? Where did you put that? I've put both mine into savings accounts (not sure what exactly without reading all the paperwork). They can't touch them til they are 18 mind you. They also have saving bonds and premium bonds.

That's gone out of the window, Bloomin, one of the first casualties of the Tory cuts.

OP, I would second the suggestions already made; Halifax do a 6% regular saver but that is only for one year; you could use your ISA allowance if you don't already; there was also a leaflet on Family Bonds in the Bounty pack that might be of interest to you.

Plans_all_plans

I would recommend http://www.thechildrensmutual.co.uk/

They invest money in shares for you and when the child turns 13 they give you the option of moving some of the money over into less riskier investments such as savings, for the years between 13 and 18.

ETA: I've just read that they're stopping these, but introducing a Junior ISA instead. Maybe have a look at what the Children's Mutual will offer Junior ISA wise.