Premium Bonds or JISA for an 8 year old?

FeistyFidget

We have a few thousand squirreled away for our 8-year-old daughter and were hoping to convert it into some kind of low/no risk high yield savings or investment to help her out in her twenties.

It's currently sitting earning very little interest in her current account. A few friends have mentioned that they have had premium bonds since birth for their kids and seem to have accrued a healthy amount of "winnings" from these. Although this is something I do not know much about.

I'd love to know what you'd recommend we do with her current pot.
1. Ideally this would be an undiscussed pot that would be in her name but wouldn't be presented to her on her 18th for fear of it being cashed out and wasted.
2. Due to self-employment issues, it can't be in my or my husband's name. It will be her money.
2. I have a LISA that's being used as my retirement fund (self-employed) and I LOVE the government contribution, is there anything similar for children?
3. We would top this up by around £500 a year, so not a huge amount

Thank you in advance

xylophone

 it can't be in my or my husband's name. It will be her money.

Then she is legally entitled to access and control no later than age 18.

Be aware of the "£100 rule" for money/assets gifted by parent to an unmarried, minor child.

https://www.moneysavingexpert.com/savings/child-savings-tax-free/

This does NOT apply to gifts from parent into a JISA.

In short, if you want to keep control of access to the money, keep it in your own names.

Otherwise, consider the JISA?

Albermarle

and were hoping to convert it into some kind of low/no risk high yield savings or investment to help her out in her twenties.

High yield and investments are never no risk. You have a basic choice of ;

Cash savings, easy access or fixed term, or Premium Bonds.

Investments in stocks and shares. Normally can be expected to outperform cash savings and inflation over the long term, but can be volatile in the short/medium term.

Normally in your circumstance, a Stocks and shares JISA for your daughter is recommended, but she will get access at 18.

If you do want her to get access until later, you have to save/invest in your own name ( and maybe pay tax ).

You can not ( legally anyway) keep the money in her name, but somehow not tell her about it. The JISA or savings provider will contact her directly when she is older.

but wouldn't be presented to her on her 18th for fear of it being cashed out and wasted.

There are two possible solutions to this.

1) You educate her about money as she grows up. A separate savings account she can put birthday money it and take it out can be a good way to learn.

2) You can accept that an 18 year old maybe  blowing some money on having a good time, is not necessarily a waste. In fact it is normal. She will only be young once !