Some of them may look cute but they are all horribly expensive. Madeline Thomas, a former Reuters money reporter and leading UK personal finance journalist, on five of the very best savings schemes for kids.
Best for New Babies (Child Trust Funds)
A Child Trust Fund is a must-have for every child born on or after 1 September 2002. They are cheap, flexible and tax-free. Best of all, the government will give you at least £250 to open one - more if you are on a low income. If you still have your voucher stuck to the fridge door, invest it now. You’d be mad not to.
Individual Savings Accounts are ideal for building up a substantial nest egg for a child. They are tax free, cheap and flexible. If you have already used up your annual allowance or are short of cash, perhaps grandpa could be persuaded to help? Start now and it could pay their university fees or the deposit on their first home.
Piggy banks are fine but bank accounts are better: they are more secure, they pay interest and they are harder to empty on a whim. Most banks and building societies now offer children’s current accounts, complete with monthly statements and cash cards, and NatWest’s Card Plus account is one of the best.
If the piggy bank is threatening to burst and your child is more interested in amassing cash than spending it, then set up a high interest saving account. Bradford & Bingley's Firstsave account is a great option for children wishing to tuck money aside.
Premium bonds are a great gift for children. They are a fun investment, offering the holder the chance to win a tax-free prize of up to £1 million while guaranteeing their money back at any time. They are also underwritten by the government and so are nice and secure.
A Child Trust Fund is a must-have for every child born on or after 1 September 2002. They are cheap, flexible and tax-free. Best of all, the government will give you at least £250 to open one - more if you are on a low income. If you still have your voucher stuck to the fridge door, invest it now. You’d be mad not to.
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Individual Savings Accounts are ideal for building up a substantial nest egg for a child. They are tax free, cheap and flexible. If you have already used up your annual allowance or are short of cash, perhaps grandpa could be persuaded to help? Start now and it could pay their university fees or the deposit on their first home.
Premium bonds are a great gift for children. They are a fun investment, offering the holder the chance to win a tax-free prize of up to £1 million while guaranteeing their money back at any time. They are also underwritten by the government and so are nice and secure.