I want to put away £100 per month for my new baby, what is the best way to make this grow?

I have a six-month-old baby, and I want to begin saving money for her future, but I don't know what the best way to do it.

We are hoping to put away between £50 and £100 every month, as well as any money she gets from Christmas and birthdays.

She also has Premium Bonds set up by her grandparents, which they currently save into.

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Having the foresight to set up your child for the future can give them a head start when it comes to funding major life milestones like buying their first car or paying for university.

Putting away money from early in their life can also give you a chance to see it grow as they do and leave them with something worth far more than your original commitment.

However, choosing where to put this money, especially as it grows in value and you add more to the pot, can be a difficult decision to make.

The options available can provide a range of returns but can also open you up to varying levels of risk depending on which route you choose to go down.

If you are planning to squirrel the money away until your child is an adult, then that gives you a fair amount of time to experience strong growth by investing the funds.

On the other hand, if you intend to use this money through their childhood, then investing might not be for you as a result of the shorter time span you have to work with and the level of access you require.

For long-term saving you can make use of Isas, which have both cash as well as a stocks and shares options. These offer tax free saving, whereas in child savings accounts any interest above £100 on funds given by a parent is taxable if over the savings allowance of the parent.

Your child gains control over their Junior Isa when they reach 18, when it also becomes an adult Isa, and after which point they can choose what they want to do with the money.

If you want ta mixed approach, where you can invest for your child but also save some cash that they can access, you could choose both a child savings account and a Junior Isa, allowing you to save for the long term, as well as have a tool to teach your child about saving as they grow up, and save up for things they want to buy as child.

This is Money asked three experts what you should do to build as large a pot as possible for your child.

You've taken a great step in planning for your daughter's future, and with a monthly saving goal of between £50 and £100, you're off to a fantastic start.

In order to make the most of these contributions, we need to ensure your daughter's savings are both effective and tax-efficient.

It's brilliant that your daughter already has Premium Bonds.

Premium Bonds are a popular option for those seeking secure, government-backed savings with tax-free returns and each month you have the chance to win prizes ranging from £25 to £1million (2 prizes).

If you're able to save £100 a month, that equates to £1,200 per year.

Over 18 years, this could grow to £21,600, not including any potential prize wins but inflation would reduce its real value.

While Premium Bonds are secure, it's important to remember that the returns come through prize draws rather than traditional interest, which means you may not receive any returns.

However, it remains an option for building her savings pot, especially if she attracts the monthly prizes.

Another excellent option to consider is a junior stocks and shares Isa. This account is also tax-efficient, meaning no income tax or capital gains tax is payable on any returns.

Each tax year, parents, relatives, or friends can contribute up to £9,000 to either a stocks and shares Isa or a cash Isas, or a combination of both.

The advantage of a stocks and shares Isa is the potential for higher growth over time.

Investing gives your long-term money the opportunity to grow more than it might on deposit.

The same £100 invested in a low-cost global equity index fund assuming an 9 per cent per annum average return, could grow to approximately £50,748, tax-free, potentially providing your daughter with a much larger nest egg.

Of course, investing carries the risk of loss but with an 18 year term, time is on your side to ride out the ups and downs of global stock markets.

If you're thinking even further ahead, another great option is contributing to a pension for your daughter.

One of the challenges we face in the UK is that many people are under-prepared for retirement, despite the dreams of a luxurious lifestyle in later years most won't have saved enough. By starting early, you can give her a significant head start.

You can contribute up to £2,880 annually on behalf of your daughter, and the government will top this up by 20 per cent, making the contribution £3,600.

If you were to contribute £50 per month, the government would still provide the 20 per cent uplift. The downside is that the money isn't accessible until your daughter is 55, but it's a powerful way to ensure her retirement is well-funded.

You're already making great progress by planning ahead. Whether you stick with Premium Bonds, open a junior stocks and Shares Isas, or even contribute to a pension, each option offers unique benefits. For personalised advice, it's always a good idea to consult an independent financial adviser to help guide your decisions.

Congratulations. It's always difficult to make long-term plans in the hectic newborn months, so congratulations are due on that front too.

The first choice is whether to save or invest. If you need the money for your child within the next five years, saving is sensible, because investments will rise and fall in value over the short term.

Alternatively, if they don't need the money for 5-10 years or more, investment is usually the best option.

Parents might worry about taking a risk with this money, but over the long term, the potential growth on stocks and shares can vastly outstrip savings.

For investments, it's worth considering a Junior Isa.

They grow entirely tax free, which may not seem vital for a baby, but it means not having to consider tax on growth further down the line.

The money is tied up until the age of 18, which means there's no temptation to dip in along the way, but you need to appreciate you can't get your hands on it in an emergency.

You also need to know that at the age of 18, it belongs entirely to your child. Some people struggle with relinquishing control of how the child spends this money, but you have years to help them understand the positive impact it can have on their life if used wisely.

If you want the freedom to be able to spend the money on things your child needs before the age of 18, you may want to save or invest in your own name with a cash or stocks and shares Isa.

It'll grow free of tax and can be accessed any time. However, it will use a chunk of your annual allowance.

When they're a bit older, for money you expect to be set aside for less than five years, you could save in the child's name.

Children's savings accounts offer particularly attractive rates, because banks are keen to secure lifelong customers, but bear in mind that your child will be able to spend it as they choose.

In reality, most people will aim to do both, splitting the monthly payment so some goes into investment to provide a nest egg in early adulthood and some helps build savings for them during their childhood.

Premium Bonds are popular with grandparents, and offer the chance of winning a life-changing sum, but you need to be aware of the price you pay for this.

You don't earn any interest on these bonds, so if you don't win enough, you will be losing money after inflation.

The odds aren't in your favour. In an average month, the average bond-holder will win nothing, so although you'll get to keep whatever you pay in, your Premium Bonds will be losing spending power.

If you're happy with this, Premium Bonds can play a part in saving for children, but you need to appreciate the potential losses as well as the possible gains.

When it comes to saving for kids, starting early and saving regularly can really add up. My tip is to consider a mix of savings accounts and investments to balance risk and return.

Children's savings accounts are popular and often come with competitive interest rates.

Some accounts allow instant access to funds, while others may offer higher interest rates if you commit to regular monthly deposits.

However, many parents are unaware that their kids are liable to pay tax on savings on money that's been gifted to them. That's where a Junior Isa (or Jisa) can be a good alternative.

A Jisa is a tax-free savings account specifically for children. You can save up to £9,000 per year, and the money is locked away until your child turns 18. There are two types of Jisas: stocks and shares Jisas and cash Jisas.

A stocks and shares Jisa is invested in the stock market. Over longer periods, stock markets generally tend to outperform cash so your child could earn greater returns.

Returns are never guaranteed though, and there is risk to capital if markets fall in value which means you could get back less than you invest.

Cash Jisas come with either a fixed or variable interest rates, with a wide range of options available from banks and building societies.

Following the recent base rate cut by the Bank of England, experts are predicting that savings rates will begin to fall, so keep an eye on your child's nest egg to make sure you're getting the best possible savings rate.

Some parents may be worried that they must have significant sums to regularly save for their kids. But this isn't the case and the sooner you start saving, the more time the money has to grow.

If you can, try making saving a habit by changing when you save. Set up a direct debit or standing order that leaves your account immediately after you get paid.

Saving for your children will become one of your fixed expenses that you don't need to think about and small amounts will soon start to add up.

Alternatively, make saving easier by opting to round up your shopping to the nearest pound or paying in cashback.

A word of warning, with a Junior Isa once money is invested – whether in cash or stocks and shares – it belongs to the child. That means you can't get it back, no matter how much you need the money.

What's more, once your little one turns 18 and the account changes to an adult Isa, it's up to your child how they choose to spend the funds.