It is possible to profitably invest your money in a plan such as a child trust fund but it will require some time commitment on your part. As in all areas of life, check carefully in advance before you act and discuss with others before making a decision. You could jeopardise the future of your children by investing unwisely. Even if you are dealing with seemingly straightforward investing matters one must be wary. You should read the terms carefully and note any penalty clauses and how you terminate the contract. There are hardly any contracts that expire simply, Do you need to cancel in writing?

You should ask several banks for advice and information. Often, smaller banks are better than large ones as they want your custom more. Many banks also specialise in a particular area such as trusts and savings, so it is advantageous if you contact a number of banks. One thing you must remember is tha you may not be able to access your funds if you put your money in a long term savings vehicle. If you were to invest your money for a long period of time, make sure that it is really money that you will not have need of in the short term, because you can not withdraw this money.

This is precisely why the fixed term option is a good investment. There are banks that invest your money for a month or even just one week. So you can save for short periods of time to make your your money work for you. You will earn more this way than if you leave it to lie in a current account. The interest on current accounts are modest and not comparable to other options.