Savings for grandson becoming 16 - best option

sqwiffy

We save £10 a month for our grandsons and have built up a little pot for when they become 18. The eldest is due for his 16th soon and the bank have said the regular saver and the account the rest went in each year will all revert to the low interest rate then. Apparently if I want to continue saving monthly that won't be a kids saver held in his name but would be a separate account of mine so presumably it will be liable for tax if I am. I'm now wondering as the rates are so low whether I should just stick it all in premium bonds then and add another 2 years money to that amount? His parents already hold a trust fund savings account for him, so we can't open one of those. I know we could add our money to it but we wanted to hand him the savings account on his 18th birthday. You'd think they could still access kids rates until they were an adult but it seems not! Any other ideas? 

sevenhills

I have recently told my daughter that I will give her £500 when she finishes university. I bought shares in my SIPP, Virgin Money UK plc  and Associated British Foods plc

I told her that if the value of the shares increases then so will her £500, her guaranteed money is £500. It will make her think and learn about shares, without any risk.

xylophone

https://www.bathbuildingsociety.co.uk/personal-savings/accounts/instant-access-accounts/junior-saver/
Might suit - one account for each grandchild.