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If you are looking for something a little more rewarding than a piggy bank for your children, you could consider a childrens savings account.
Many banks and building societies offer special savings accounts for children. The good news is bank savings accounts for children attract higher interest rates than those on other savings accounts and come with a variety of incentives.
Most savings accounts are restricted to children under the age of 18 but some apply to people under 24.
Childrens savings accounts are simply regular savings accounts repackaged. Like regular savings accounts offered by banks and building societies, savings accounts for children have restrictions on how much – and how little – can be invested each month.
Many children’s savings accounts carry a notice period for withdrawals, which if breached can reduce the interest paid on the account. Similarly, how often you can make withdrawals is usually restricted over the course of a year. Tampering with your nest egg once too often is certain to have an adverse affect on interest rates.
The best savings accounts for children, ie high interest savings accounts, are not usually easy access investments. It pays to consider whether a notice period or instant access account is more suited to your child. Bear this in mind when shopping around for the best savings accounts for children. Debts suggest you compare childrens savings accounts by using our A-Z directory – where you will find all the major providers at your fingertips.
To encourage a child to save their money, most providers of children’s savings accounts offer incentives, which can include anything from posters to gift vouchers. Naturally, however, the gift is the least important feature to consider when choosing a savings account for your child. Instead ask yourself the following:
If you have experience of saving for children, other Debts visitors could benefit from your feedback – please visit our Forum to post a message and share advice.
