Interest wouldn’t be tax free unless you looked at something like national savings children’s bonus bonds, but a child has a personal income tax-allowance like an adult and may be able to claim back tax on interest using an R85 form, however you will normally find if the money is all from gifts you’re limited to £100 per annum tax-free. Another option for larger amounts of money would be unit trusts as these are chargeable to capital gains tax but you have an annual allowance of £10,100 before tax is charged at 18%, regards, Steve
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