Interesting thread. I suspect some of the pressure to bank the money comes from the older folks. Back in the day, it was fairly common for people to start these longterm accounts for children, they weren't actually bank accounts but some kind of insurance or bonds or benevolent society scheme. What typically happened with these was that you made fairly small deposits, but the interest compounded massively over time, so by the time they turned 18 or 21 or whatever it was actually a tidy little sum. Bank accounts sooooo don't work that way these days plus your fighting inflation all the way.
True. My dad has put a small amount into trust for the girls. It will have increased only 2 thirds by the time DD2 gets it, much less for DD1 as it will be away for a shorter time. His reasoning for putting the amount into trust, was to protect it for the girls, he has had concerns about people contesting his will, if it is in trust then it can't be contested once he is gone.