If you believe the surveys, mums and dads are planning to fork out an average £225 on tech gifts for their children this Christmas.

According to uSwitch, almost four in 10 parents with children aged one to six years old planning to spend more than £200 on them.

These days, a folded banknote in a card or a cheque in an envelope may be old-fashioned, but what about a gift for kids that gets them thinking about money?

Adrian Lowcock, head of investing atAXA Wealth, says: “While a financial gift may now not seem very traditional, it is likely to be more enduring and remain long after the other gifts have been forgotten.”

How about Premium Bonds? Anyone over 16 can buy Premium Bonds in their own name, and relatives can also buy them on behalf of under-16s. The minimum purchase is £100 worth of bonds (the maximum holding is £40,000). Bonds earn no interest but are entered into a monthly draw with the chance of winning one of two £1m jackpots, plus a handful of £100,000, £50,000 and £25,000 prizes, and plenty of consolation handouts worth £100, £50 and £25. The average prize pay-out is based on an interest rate of 1.35 per cent, and the odds of a single £1 bond winning in any one month are 26,000 to one. Patrick Connolly at independent advisers Chase de Vere says: says: "Premium Bonds are a safe place to hold money, as they are backed by the government, plus all winnings are tax-free.” But you have to be lucky, and not worry about inflation eating into your parked cash.

Dedicated children's savings accounts often boast the most generous interest rates on the high street.

If you have an account with Bank of Scotland, you can go to a branch and open a Young Saver account which will pay 2.25 per cent. Lloyds customers can do the same but only if they hold a current account themselves, while Halifax also offers the Young Saver to all parents. This account also comes with a cash card for the over-sevens.

Nationwide Smart Limited Access, open to children up to 18, pays three per cent, but only one withdrawal a year is allowed or the rate plunges to 0.75 per cent.

Virgin Money’s account pays two per cent and Skipton building society’s Leap account offers 2.25per cent.

Halifax Kids' Regular Saver account is paying six per cent. But that is limited to savings per child of £10 to £100 a month for 12 months only.

If your child is under seven you will have to open the account for them, showing your child's birth certificate or passport as well as your own identification.

Until April, you will need a form R85, available from the bank or building society, to ensure you do not pay tax. But if the interest is not payable until after April, relax because from next financial year interest will automatically be paid out before tax to all savers.

Lowcock says: “These accounts hold money in the child's name and can be good way to encourage children to save.”

He goes on: “Putting some money into an ISA might not be on the top of everyone’s letter to Santa, but in years to come that money may have grown in a significant sum. A parent or guardian can set up a Junior ISA but anyone can contribute up to the annual allowance of £4,080. In addition you can help encourage an interest in savings and investing at an early age.”

The drawback with a Junior ISA is that the money stays locked up until the child is 18. Top rates currently available on the cash version come from building societies Nationwide and Coventry, both paying 3.25 per cent.

The Halifax pays four per cent, but only if the parent also holds a Halifax cash ISA, otherwise it’s three per cent.

But Lowcock says: “Those with a longer term horizon should also consider investing in shares. There is a wide choice of shares available but those looking to do it themselves for the first time may prefer funds which offer diversification and do not require constant monitoring.”

Investment company savings plans are available through online platforms and in addition there are manager-sponsored children’s savings schemes, like Jump from the Witan trust, and Junior ISAs, whilst any investment company savings scheme can be designated to a child. Minimum contributions start at £30 per month or a £50 lump sum.

Annabel Brodie-Smith, at the Association of Investment Companies, says: “Parents might like to contribute towards a gift that can last long into the future, and an investment company can be a useful way to access the long-term potential of the stock market. Investment companies have strong long-term performance and there are a diverse range of sectors and risk profiles to choose from. They can invest in a range of investments on your behalf to spread risk and are a great way to invest for children over the long-term.”