Child saving plans

Nov 4 2008

Bank claims strengthens cash Isa rate

In news which may be welcomed by people saving for children, a bank has announced that it has strengthened the rate it offers on its e-cash individual savings account (Isa).

From the beginning of this week, Scottish Widows started offering consumers an increased bonus of 1.5 per cent for 12 months, giving savers an initial annual equivalent rate of six per cent tax free.

The rate is available for new cash deposits and for people who wish to transfer in from another provider.

"Along with the very competitive interest rate, customers can benefit from easy online access to savings and peace of mind that their savings are held in a tax free account," stated Mandy Webster, marketing manager at Scottish Widows.

However, the number of people who are able to take advantage of this may be limited, with new research from AXA revealing that 20 million homes in the UK are currently unable to save money as a result of the financial pressures they are under.
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