If you would like to make sure that your child has a substantial nest egg available to them when they become an adult, investing in a child ISA may the most attractive option.
This kind of savings account allows you to invest £4,000 every tax year in your child’s future, an amount that is likely to grow as the result of a good interest rate. The great attractiveness of these accounts comes from the fact that these savings is tax efficient.
There are two basic kinds of child ISA that are available:
A Cash ISA - Money is held in cash and attracts interest. The money is safe but is at the mercy of inflation over time. On the other hand a Stocks and Shares ISA will provide the potential of inflation beating returns over time but capital will be at risk.
See below for a FREE Junior ISA pack for investing in a Stocks and Shares ISA for a child: