Savings gifts for young relatives

[smithyithy]

Starting to plan Christmas presents etc for this year.. I've 2 cousins who are still kids, 5 and 2.

I was thinking, as they'll be swamped with presents anyway, it could be nice to give them something in the form of savings, obviously they won't appreciate it at their age but I think aunt and uncle would appreciate it.

Wouldn't be a big amount by any means, I guess it's just more of a gesture but could be added to over time.. Just wondering what the best option would be?

Someone suggested Premium Bonds to me, they're not something I know a great deal about really, but could that be an option? It seems like something that would be easier to 'gift' but I'm not sure how that works with regard buying for someone else.. Same with ISAs, savings accounts etc.. How do you actually open something like that for someone that isn't your child / grandchild / whatever?

Am I better just giving cash?! Any ideas welcome...

[Gareth1974]

You can buy Premium Bonds as a gift, the minimum purchase is £100. My parents bought some for my son - they found the process to do so a bit cumbersome.

[Jimmy Recard]

Some banks offer a Junior ISA with better interest rates than the normal one. Could look at those?

[Jockman]

I’m sure it’s fairly straight forward to open a child’s savings account so long as you follow the basic rules.

I did pensions for all the grandkids, kids, wife. I would add caution to this approach as fees can take up a large part of your contribution at start up and it is a long term commitment.

Premium bonds are a favourite. No reason not to.

Or you could just buy them a prezzie. Just stagger the distribution as they tend to like the experience of unwrapping more than taking in what’s inside. Kids hate sensible relatives