Jun 28 2006
Parents should help their children take advantage of those high street banks offering more than the Bank of England base rate (4.5 per cent) on saving accounts, according to reports.
In general, there seems to be a lack of interest in kids' savings accounts, according thisismoney.co.uk, with banks tempting young investors with gifts and vouchers and then paying a paltry interest rate in return.
However, some accounts are offering rates above the odds including the Halifax – offering a staggering ten per cent on its regular child saver account and 4.8 per cent on the Save4it account.
The NatWest Young Saver account also provides a good deal, offering investors 4.5 per cent.
Several building societies also have good deals for children's accounts including Loughborough building society with 4.9 per cent, Nationwide offering 4.76 per cent and Britannia and Portman both advertising 4.5 per cent.
It is certainly worth finding the right deal as children have a personal tax allowance of £5,035 which they can earn before paying tax.
St James' Place Bank, a division of Halifax, has vast experience in managing investments, for more information click on our free brochures page.
