May 2 2007
Banks in the UK are increasingly attempting to educate younger Britons on the importance of savings, with the institutions "slowly but surely" improving their financial advice for children.
HSBC reports that banks are also providing dedicated student accounts with interest free overdrafts for older children, while suggesting a division between saving and current accounts to improve money management skills.
Karen Garner, a press officer for the company, said: "I think the banks are trying to help children and educate children on getting into the habit of keeping their savings separate."
She added that in keeping separate accounts for saving and spending and transferring funds simply between the two, young people will get into the habit of doing so for later on in life.
The Fair Investment Company reports that child savings accounts invariably offer higher rates of return than other bank accounts, with tax-free interest available up to a certain sum.
