Savings Account or Premium Bonds for Child...

IndigoSparrow

Hi, 

It's been a while since I last posted so apologies if I don't get it quite right!

I'm just looking for some opinions really. My toddler has some money saved from birthdays and Christmas. It's not a lot but it'll continue to grow as some family members prefer to gift money. I'm unsure about what the best thing to do is - my partner wants to invest it in premium bonds but I think a savings account would be better. Just wondering what others have opted to do!

Thanks,

Newbie_John

If the total is under £20k the chances of winning with premium bonds are very low - so after a year you could result with £0 win.
Saving account would generate interests no matter what, although that could be subject to tax and one of you would have to pay it.

You could also consider ISA and that would sort the tax issue.

Also depending on the purpose of money, if you're not planning to use it before their 18th birthday you could consider JISA.

Keep_pedalling

S&S JISA would be worth considering as this is a long term investment.

IndigoSparrow

Ah yeah it's definitely under £20K so you're right the premium bonds don't make much sense at all!

Thanks for the advice, I'll check out JISA

george4064

@IndigoSparrow hows it going? Hope the JISA is setup and your child's money invested, it will yield a very decent return over the long-time frame we're talking about.