THINKING of opening a children’s savings account for your little one? We round-up the best rates currently available. Savings accounts for children work in a similar way to adult ones though interest rates tend to be higher. But with so many different options available, from regular savings accounts and easy-access options to Junior Isas, you […]
THINKING of opening a children’s savings account for your little one? We round-up the best rates currently available.
Savings accounts for children work in a similar way to adult ones though interest rates tend to be higher.
Getty - Contributor The Sun Online’s guide will help you find the best rates for your children’s savings[/caption]
But with so many different options available, from regular savings accounts and easy-access options to Junior Isas, you may be wondering where to begin.
Here are the best-paying accounts currently available on the market, according to comparison site Moneyfacts.
What are the best children’s regular savings accounts right now?
Regular savings accounts require parents to put a minimum amount of money away monthly.
Typically it ranges from £5 to £100 a month for a year.
They tend to offer the highest rates, but because the amount you save builds up slowly the total interest you earn is limited.
Bear in mind that if you miss a payment or need to withdraw cash during the period you might lose the rate.
So make sure you’ll be able to fork out the cash during the time period.
Halifax Kids’ Monthly Saver – Apply here Rate: 4% fixed for 12 months
Min deposit: £10 per month
Max deposit: £100 per month
Balance after depositing £100 a month for 12 months: £1,224.00
Barclays Children’s Regular Saver – Apply here Rate: 3.5% fixed for 12 months (this drops to 1.50% if you make a withdrawal)
Min deposit: £5 per month
Max deposit: £100 per month
Balance after depositing £100 a month for 12 months: £1,222.75
Saffron Building Society Children’s Regular Saver – Apply here
Rate: 3% variable fixed for 12 months
Min deposit: £5 per month
Max deposit: £100 per month
Balance after depositing £100 a month for 12 months: £1,219.46
Top tips for teaching kids to save
MAKE saving fun - try these tips to get your kids started:
Match your children’s savings on a pound for pound basis
Get your kids to put some of their pocket money into a piggy bank
Then take them to the bank every month to pay it in – get them used to the habit of saving and seeing their balance grow
Draw a chart on their wall and colour it in as the balance grows to keep them interested and so they can monitor their progress.
What are the best easy access savings accounts right now?
Easy access savings accounts are a good choice if you want your child to be involved and learn about saving.
They’re a good place to start as they allow you and your child to add and withdraw cash at any time, but you’ll get lower rates because the money is always readily available.
Encourage your child to put away a portion of their birthday and pocket money.
Santander 123 – Apply here
Rate: 3% variable
Interest earned on £1,000 balance over 12 months: £30
HSBC Children’s Regular Saver – Apply here Rate: 2.5% variable on first £3,000, 0.25% after this amount
Interest earned on £1,000 balance over 12 months: £25
Bath Building Society Junior Saver – Apply here
Rate: 1.8% variable
Interest earned on £1,000 balance over 12 months: £18
Getty - Contributor Here’s what you need to know about opening a Jisa for your child[/caption]
What are the best easy-access Junior Cash Isas in 2019?
Junior Isas (Jisas) are tax-free savings accounts for kids under-18.
They allow parents to save money free from tax either in cash or by making investments.
Once the child turns 18, the Jisa automatically converts into an adult Isa and the child has full control over the money.
NS&I – Apply here
Rate: 3.25% variable
Interest earned on £1,000 balance over 12 months: £32.50
Coventry Building Society – Apply here
Rate: 2.95% variable
Interest earned on £1,000 balance over 12 months: £29.50
Tesco Bank – Apply here
Rate: 2.75% variable
Interest earned on £1,000 balance over 12 months: £27.50
Savings accounts are not the only way you can save for your child’s future.
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