Setting up savings accounts for kids

[JimmyConwayNW]

I will admit I know absolutely nothing about savings and investments accounts.

I was looking to start savings accounts for the 2 youngest and had thought if I put away £1k a year for each by the time they are 21 should have a nice sum as a bit of a helping hand towards their futures.

Interest is very low and someone had mentioned S&P 500 tracker or investment account but I don't really understand how these sort of things work or if its safe. Would anyone have any suggestions to a good way to do it so the funds compound, or generate a little interest?

Thanks and appreciate any advice.

[JimmyConwayNW]

fat80b said:

Lots of options but for me it came down to - do you want to cede access of the funds at 18? And have you maxed out your ISA allowances yourselves

If the answer is no to these then imho you’d be best off opening an ISA in your name (or your partner) and using this for the savings vehicle knowing that it is the fund for the kids.

This is a good point I certainly think I would like to have it for them but allow myself to decide when they can have it rather than automatically just be given a lump sum at an age where they may, or may not have the maturity to use it wisely.