Not really having paid much attention to these things in the past, given our son is only 16 months old, I spent some time looking into it.
Whilst this tip certainly won't make you a millionaire overnight, NSANDI's child bond allows you to invest up to £3,000 at a tax free interest rate of 2.5% per year for 5 years.
What's the catch? Well, seemingly very little, with investing starting from £25, it seems that the only hassle involved is the administration of setting the thing up under a parent or guardian's name. Any penalties? Only if you withdraw any sum of it early and this is only 90 days worth of interest.
A good buy? Most certainly. In this market where interest rates are rock-bottom, 2.5% per year tax free is not to be sniffed at...