Saving for children

lclarke90

Hello there. I have kept every penny my two children have ever recieved (they are 4 and 1). I don't ever lift money out of it and don't intend to until they are 21. What would you suggest I do with it to make the most return on it? I'd love to be able to hand them the deposit for a house when the time comes! Is there one place I could put it until that day or will it be a matter of changing it from time to time?

Zorillo

If you want to keep the control of the money until each child is 21 then you will need to keep the money in your own name because most options designed for saving for children and the control to them at 18.
If you are comfortable with then having it at 18, then Junior ISAs offer preferential interest rates.
You could also consider investing the money as that should generate a better return over 15 years or so than savings would, but you would need to be sure you understood and wre comfortable with investment risk - you may get back less than you put in because investments rise and fall at different times.

czmw3s

You may deposit saving money for your children in a student saving account. In many countries, Banks offer high-interest rates for student saving accounts. That's how you can increase the money for your child.

Albermarle

If you want a guaranteed safe haven that will give a steady ( if not great ) return , then you could consider buying premium bonds in the childs name  .
I think they transfer to the child at 16 .  The fact they might win a big prize may deter them from spending them too quickly !
https://www.nsandi.com/premium-bonds

xylophone

I have kept every penny my two children have ever recieved (they are 4 and 1).

If this money has been given  as unconditional gifts to your children then it should be held in the child's name with you as bare Trustee. 

You do not have the right to withhold  their money  until the age of 21 as they reach their majority at the age of 18  and have the legal right to access and control at  that age.

If you are holding the money in your personal name, then it is being taxed as yours ( and should you die, would fall into your estate) - it is unlikely that you are receiving interest at a rate that would be available to your children so they are missing out.

You might wish to consider a JISA - NS and I currently offer 3.25%.

https://www.nsandi.com/junior-isa

AnotherJoe

I say invest most of it, put the remainder in a higher rate children's savings account for their teen years.