If your child's ONLY income is interest or dividends from investments and savings in their name, you can include it on your tax return, although I'm not sure where it is located.
However, if your child has any other income (capital gains from investments, or wages, or prizes, or a taxable scholarship, or anything else) then ALL their income must be reported on a tax return in their own name. This usually does not stop you from claiming them as a dependent, but the child must check the box for "someone else can claim me as a dependent."
