Jun 5 2007
Regular savings accounts may be useful in establishing a routine of investing in a child's future, an expert has advised.
Susan Hannums, savings manager at AWD Chase de Vere, claimed that accounts which demand a regular minimum deposit can guarantee a certain amount is saved each month.
However, she warned that such accounts could carry stern penalties if a withdrawal is made, reports the Independent.
Ms Hannums told the publication: "If you want to plan well ahead, then they get you into the habit of putting a bit away every month."
But she added: "Often these accounts offer very competitive rates of interest, but there are usually lots of caveats."
Her comments were echoed by the Investment Management Association, which urged parents not to put funds into savings accounts if they are needed elsewhere.
"You've got to be able to feed and clothe your kids," said communications officer Helen Stephenson.
