The Scottish Mail on Sunday

Help your little one save up for a house

- By Sally Hamilton

PARENTS looking for different Christmas presents for their children should not rule out a financial gift that keeps on giving.

Premium Bonds from National Savings & Investment­s can be purchased for your children – or grandchild­ren – for a minimum of £100. Taxfree prizes ranging from £25 up to £1million can be won in monthly draws.

Alternativ­ely, a children’s saving account can be opened and youngsters can top them up with pocket money and earnings from chores. Interest rates are higher than usual – with the best paying 3 per cent.

For longer term saving, a Junior Isa lets you save up to £4,260 a year tax-free on behalf of a child, either in cash or shares.

The money is tied up until the child turns 18 making it an ideal vehicle to save for a house deposit.

Wealth manager Brewin Dolphin calculates that putting away £108 a month could build a fund worth £33,230 – the average deposit currently paid by first-time buyers.

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