Investing for grandchildren

I think it does depend on their parents' financial position but I agree with jingle that I like to see their faces when I get the present just right.

DS3 and his wife suggested that instead of buying them an anniversary present each year we start a savings fund for future children. Not so easy as you can't open a child ISA for one not yet even planned! I have suggested peer to peer lending as it has a good interest rate and they don't need the money. I know there is some risk but as it won't be a large amount it might be fun.

We have saved for our DGD since she was born, as we could never afford to save for our DD. I am not sure now that it is a good idea. DGD doesn't know we have an account for her as DD is afraid she will start badgering for the money. DGD is 15 and we planned to give her the money when she is 18 or whenever her parents think the time is right. When I mention to DD that maybe she could use it for university fees, or driving lessons, or to buy a car, DD replies 'we want to help her ourselves'. I'm thinking now it was the wrong thing to do although we just want to help as our DD and SIL struggle money-wise

I top up their Isas each April, but I will never forego the delight of seeing their faces when they open our present to them.

This year for the 10 year old, it was Minecraft Lego. I will never forget his little face when he said to his mum, "I've got The Mine!"

This time, for the 14 year old, I am looking into opening a Nationwide kids' account with debit card, so that he can start handling his own money.

LyndaW I worry about the masses of toys etc my DGs has already has and how something less transient like savings would be more useful than presents "for the sake of it."

Having been asking her to open a junior savings account since DGS1 was born I eventually got DD to get round to opening open a Junior ISA when she was on mat leave with DGC2. I need her to get on and open one for new baby.
Maggiemaybe I think that is the best way to go.

We leave it to the parents. We've set a limit for birthdays and give the DGS one present to open, then hand the balance over to the DC to use as they see fit. If they want to use it for shoes (for the children ) or the holiday fund, that's fine by us. They all have premium bond accounts, so we'd put any extra into them. I know the returns aren't usually great - though ours are running at 4% pa at the moment - but there's always the chance of a decent prize.