Savings accounts for young children

I have two young children, aged 4 and a newborn. I would like to start putting some money away for them each month so they have a nest egg.

The whole savings account thing seems a minefield, can anyone recommend a good one? Or should I open an ISA for each?

Basically they don't need access to the money, and looking for a good interest rate. Cash back or the like is a bonus too!

Thanks for your help.


  • jimjames
    jimjames Forumite Posts: 17,150
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Personally I wouldn't save as cash for that length of time. Investments are far more likely to beat inflation over 10-15 years plus.

    Whether you decide to invest via an Junior ISA or not depends on a number of factors like when you want them to have the money and if you want it purely in their name.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Flobberchops
    Flobberchops Forumite Posts: 1,279
    1,000 Posts Fifth Anniversary Combo Breaker
    One of the best providers of children's savings I've seen is Halifax, who have a 6% Regular Savings account and 4% JISA (3% if you don't have an active adult ISA with them).

    Across the timescale you're talking (14+ years) a pair of Junior Stocks and Shares ISAs would *probably* generate more interest. Just like adults though, children can split their ISA allowance across cash and S+S, so why not consider doing both? The exact ratio would be your choice, but something like 1:3 cash:shares could work.
    : )
  • Diamond_Orchid
    Diamond_Orchid Forumite Posts: 195 Forumite
    Thank you, that's given me some food for thought
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