Child savings accounts
Child savings accounts are bank accounts designed for parents to put money away for their children. The majority of high street banks and building societies now offer a range of childrens savings accounts.
Child trust funds (CTF’s) were stopped by the government on January 1st 2010 but there are alternatives such as bonds and junior ISAs. There are also savings accounts for children available designed for relatives to help savings for grandchildren.
Many childrens savings accounts on the market attract higher rates of interest than regular savings accounts and come with incentives such as gift vouchers. The type of accounts range from easy access child savers accounts with the option to withdraw funds at any time to fixed rate accounts that offer a higher rate of interest but less flexibility. Some child savings accounts restrict access to the funds until the child is 18 years old.
With so many savings accounts for children to choose from and a range of companies offering different incentives, finding the best child savings account can be confusing. However, your first criteria for choosing an account should be the interest rate on offer.
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