What should I look for in a child savings account?

[badguider]

Just that really.

Looking to open an account for a newborn. It'll be his money - birthday and Christmas money etc. rather than any massive amount for education or anything.

[DH has an endowment that will mature before ds is 18 that we'll use for education or other 'big' expenses].

I guess that interest rates are crap right now... so not sure what else I should use to choose between accounts??

Any advice?

[evilkitten]

Best rates for childrens savings accounts are here:

www.savingschampion.co.uk/best-buys/personal/childrens-accounts/#table

One thing that is that while a child has the full tax allowance (so is unlikely to pay tax on savings interest), interest on money gifted by the parents above £100 per annum is taxed as though it is the parents. With that in mind, it may be worth opening two accounts - one for money gifted by parents, and one for grandparents/everyone else. This helps to demonstrate where the money originates.

If you're looking to make regular payments into the account, it's probably also worth considering that most savings accounts will lose money in real terms. If you're investing over 18 years, then it's probably worth considering equities - through a JISA or some other means.