where to put savings for children?

OK,
I've been reading all the recent posts and I'm not sure what to do with my 2 childrens regular saver accounts with AIB.
At the moment there is €1270 in each a/c and I save €120/mth for their eduacation. They are 5 & 3 so a log way to go yet. The interest is only 1.010%!
I was considering moving to Rabo as they would b quite safe? Or I have UK saver mini cash ISA still going (balance .05c but still its open!)- but wouldn't I loose alot transferrring from € to £ and back plus fluctuations in value-though maybe this doesn't matter as its long term and i could bide my time.
I know its a small amt but i'm hoping to grow it so its still important to get the best a/c.
Another qs. would combining the sum in 1 a/c be better?

Thanks

Hi L&A

There are many better rates available. Have a look at Best Buys: http://www.askaboutmoney.com/showthread.php?t=20747
Maybe over a long time frame you should consider investment products such as Rabo or similar. (No connection with Rabo) Slim

I don't think it is worth your while opening a GBP account for such small monthly payments, as you say you will loose on the FX conversion.

As Slim says, have a look at the best buys. If you are happy to have the money in an Irish bank then perhaps Permanent TSB Online Regular Saver meets your needs.

Hmm, not sure I am happy to leave in an Irish bank. I had a look at the Rabo investments and they look like a good idea- would rabo be a safer bet if ireland were to default or couldn't guarantee deposits anymore?

Safer? Yes, RaboBank are AAA rated.