Getting a return on money at the moment is hard. Almost impossible without taking on more risk than usual. Savings accounts are generally around 1% for lump sum, 3% for regular savers. If you have zero attitude to risk, you could open a KBC regular saver for the childrens allowance. This currently gives 4% interest (going down to 3.5% soon), with ability to deposit an initial lump sum.
State savings bonds are generally used when you already have a lump sum, rather than buying month to month. These are DIRT free, so if you had a large lump sum, these would be a good option with zero risk (unless you think Ireland Inc is going to go under).
Taking investment advice from a bank IMO is not a good idea. They can only push their own products, meaning you have far less choice. Also, these products are considered quite opaque in that the fees are not readily available (I notice you didnt mention fees at all in your original post). Seemingly small numbers (like 1.5%) can sound small, but will destroy gains in the future. Remember, your investment will go up and down, but fees will ALWAYS be charged. Managed funds also have historically underperformed.
While you mention you dont need the money, its not good that you are penalised to access your own money in an emergency. This is also a negative for me.
My personal opinion is I would not invest with these BOI funds.