Nov 22 2006
Online financial services comparison firm MoneyExpert has advised parents to invest their children's Christmas money in child savings accounts.
The company has noted that the interest rates on offer range from a low of 1.49 per cent to a high of 5.25 per cent, with the average being 4.125 per cent.
MoneyExpert urged parents to seek out a good deal when putting their children's money in a savings account.
Sean Gardner, chief executive of the company, said: "Investing cash for kids in a savings account is a good way to get them used to the idea of saving.
"It may not be what every kid wants, but it's certainly a good way to introduce the idea of thinking about money."
He added that there is much information available online and that parents should pay closest attention to the interest rate and not be swayed by promises of free gifts.
Earlier this month, Sainsbury's Bank noted that while 30 per cent of savings accounts on the market offer an interest rate of five per cent or higher, only 12 of these offer such rates on balances from £1.
