Kids savings for £10,000+

steampowered

As your daughter is only 6 years old, and assuming she won't be using the money until she is age 18, you are looking at an investment horizon of at least 12 years.

That's more than a full economic cycle. Over that time period, you are almost certainly going to be better off investing the money rather than putting it in cash savings accounts. Possibly through a JISA. Have a read of https://www.nutmeg.com/nutmegonomics/increasing-your-chances-of-positive-portfolio-returns-the-facts-about-long-term-investing/ which the effect of holding shares for longer on investment risk.

Alexland

steampowered said:

Over that time period, you are almost certainly going to be better off investing the money rather than putting it in cash savings accounts.

When talking about children's accounts with preferential interest rates "almost certainly" is a bit strong. Even before this virus and market recovery Vanguard's 10 year oulook was only estimating 4% pa return on equities and 1% on bonds so to stand a chance of generating a return higher than the circa 3% cash rate requires an adventurous allocation and very low fees. Tame and expensive S&S JISAs from friendly societies seem doomed to under perform the cash rate.
I uninvested my children's JISAs on the back of the Vanguard 2020 outlook (after accepting the logic of previous outlooks), reinvested near the bottom of the market (when the opportunity looked good enough) and am now pondering if I should move them back to cash again.
My "nice problem to have" is the big £ gain on the eldest's JISA means I have to contribute even more into the youngest's to level them up.