WAYS TO SAVE FOR A GRANDCHILD

You can open this yourself. Can be opened with £1. No limits on withdrawals. Plenty of choice.

Better rates of interest – up to 4.5%. More than double some of the rates on offer with easy-access savings. Low risk.

Long term potential for growth with a Stocks and Shares version rather than the cash option. Money is safe until child is 18. You’ll get a poor interest rate in exchange for the easy-access option. Poor growth potential over the years.

Over the long term, cash savings are unlikely to produce the growth that a share-based investment would.

Parents have to open this, although grandparents can pay in. Child automatically gets the money at 18.