Best low cost savings index account for children

My €4k comment refers to paying 35k off the mortgage based on the calculator saves me 3 years and 3 months off the term so reducing term to 20 years and saving €31,386.37 on interest. The difference between the two €3,613.63. My question being i hand over €35k i save €31.3k so is this not a wise means of utilizing the savings i currently have?
 
@Jollyman from a personal perspective, I aggressively paid down my mortgage for a while and had the benefit of redraw on it (another long story and multiple treads on here on it) and over the last few years it gave us lots of options. It allowed my wife take a work sabbatical, and allow us take an extended holiday the summer gone by.
It has also allowed us to pay into an 'education' fund and a 'renovation' fund over the last while without impacting our standard of living.
But it really depends on your time horizon and the other levels of 'liquidity' you have available, as well as the ages of the children !
 
Ages 10Months, 2 Years, 5 Years and 7 Years.
 
You dont save the 35k as you have to pay it over to the bank. This is included in the amount paid
You save 31,210 in interest payments during the lifetime of the mortgage.
 
Brendan Burgess said:
So if he pays €30,000 off his mortgage
He will have reduced his mortgage balance by €44,000 after 10 years.
Click to expand...
On paper he has saved 44k, but that saving isn't in cash ready to pay for any college fees. It's all tied up in equity on the house and not easily accessible.
 
Coronet said:
On paper he has saved 44k, but that saving isn't in cash ready to pay for any college fees. It's all tied up in equity on the house and not easily accessible.
Click to expand...
Some or all of the mortgage (capital and interest) repayments could be redirected into a suitable medium/long term investment in the meantime in order to provide for third level expenses etc. Reducing debts saves money by avoiding interest charges.
 
So that's the original question, where to put those savings. Except instead of putting in a 30k lump sum he'll put in the difference between the original and new mortgage payment on a monthly basis.
 
Related but bit different question from OP (hope they don't mind).

What is the best saving account for children starting secondary school. The objective is financial training, handling cards, and managing pocket money etc. I am looking at low cost account for regular deposits of children allowance and top-ups, as required.
 
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