long terms savings for grandchild?

If you are wanting to lock it away until then the best place would be a Child Trust Fund. Your grandchild will get a £250 starter from the government when they are born and you can add to this at up to £1200 per year which will easily cover your £25 a month. Interest rates can be as high as 7% if you select a cash CTF and your money is as safe as it would be if it was in an ordinary savings account. All interest gained is tax free.

Nationwide do quite a good cash CTF - but there are many more out there.

If you want you can invest in stocks and shares with your CTF which could potentially net you higher gains but the usual risks of stocks and share trading apply - as do management fees.

All the details of this will be in your bounty pack. Which mum will get free with the new arrival. :)

All the best.

I`m looking for similar advice for a niece (or nephew, not sure until it pops out :-) ). Would like to put a small amount away regularly to be given later in life. Not too concerned that it would be due on the 18th birthday - am happy if it` a longer term investment that may come in when they`re 25-30, help with a first house and all that.

Any suggestions?