Grandparent's Gifts?

What about this one Pippa, it's with NS&I.

Thanks Brue - that looks good

Fairly safe in the present climate, but probably others out there too.

Not sure how you feel about your grandson getting the money in his own name and having withdrawal rights as he ages? You maybe able to do a child's ISA but would need to be looked into regarding  where he lives and conditions etc. I save for my granddaughters who live abroad after much consideration I save it in esavings (for ease at present) attached to my/our current account in our names, although both of my children know the accounts exist and they are listed as belonging to the girls on our comprehensive list of our investments (which is updated as and when accounts open and close, my son always laughs when I say you know where to find ..... When we've gone!)  This doesn't have tax benefits we pay any if appropriate, and its included in our estate at the end, but we retain control and can offer to help with big items if we wish and they wouldn't have full access to it at a defined age. May not be right for you but suits us. 

Unfortunately a Junior Isa can only be opened by a parent, so that is out.  Some of the Kids Regular Savers are good, you need a birth certificate to open one.  We did the Halifax one for our two.

Now that interest rates are so poor, we are doing a child investment plan through Baillie Gifford (others are available) using a bare trust so the money will not be part of our estates.  You can stipulate the age they get access to the funds, and select trustees, we have ourselves plus their aunt.

You can pay in a lump sum, or do it monthly, which spreads the risk.

It should be possible to open an ISA in your name and earmark the account 're ABC' or 'JKL' as appropriate - if you do not have your own ISA which has been fully funded for the current year.

You do, of course, have full control of the account(s).

I would suggest, as it is probably for the long term, a stocks and shares ISA. You will need to consider the degree of risk to be applied to the shares purchased. Generally speaking, stock and shares have outperformed interest rates over recent decades.