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I need a way to put away a little something for my daughters future and am thinking of one of the above.
The idea is to add to the fund at least annually on every birthday - but my understanding of Children's bonds is that this will come with the drawback of effectively creating a new 'ISA' every single time I invest - each of which requiring re-investment after 5 years. I am not a good administrator.
With Premium bonds I give up the guaranteed 2.5% interest rate, but can add to the fund as and when with no penalty. I could then theoretically reinvest the lump sum into a larger nest egg ISA after a number of years have passed.
What are your thoughts/experiences guys?
Should I forego the interest for the ease of admin plus a hope in hell's chance of a prize payout?
I should add for clarity that I am not on the best terms with daughters mother and am preferring a level of anonymity/privacy/control with regards to any account raised.
To my current understanding, i need the birth certificate details to raise an account?
Find a decent kids ISA - we're getting ~5% on ours I think. Not Prem bonds - you're effectively losing money with those really.
5% is good, but I can only invest modest amounts each year. I'm not sure I like the idea of reinvesting a new ISA every year (whilst the fixed term rolls on with previous investments) - keeping track of up to 15 accounts will be a PITA, surely?