A savings bond isn't usually considered a good investment because your return is generally very tiny. Generally, when people want to invest long term, they're interested in seeing their money "grow", which isn't going to happen with savings bonds (at least not beyond a paltry amount). That said, I find the idea of investing in the child's future to be a wonderful gift. If you're not financially savvy yourself, you could sit down with a banker or financial planner and discuss what the best way for you to do that for your niece would be. At the very least, you can always open a "minor by" savings account so when she does grow up and you divulge the news of the existence of the account, she has easy access to it, as her name is on the account, as opposed to making her the beneficiary, which she would only get if you were to transfer the money to her, or become deceased.