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Product focus: Children’s accounts

Product focus: Children’s accounts

Category: Savings

Updated: 31/03/2011
First Published: 31/03/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The loss of the Child Trust Funds was a blow to savers hoping to provide a nest egg for their children in later life.

Junior ISAs, due to launch later this year should offer a good alternative for parents, but until then there are a number of competitive accounts on the market.

Chorley & District Building Society – Foxley Fund

  • If parents want to save for their children, but don't want them to have access to the money until they reach adulthood then they could consider the Foxley Fund account.
  • At 2.90pc, the rate is the highest in the market for this type of account.
  • Parents can invest up to £1,200 per annum into the account, which is operated in branch or by post.

Clydesdale/Yorkshire Bank – Children's Savings Bond

  • Parents wanting to save a lump sum for their children could look at the Children's Savings Bond from Clydesdale and Yorkshire Bank.
  • The account pays 4.25pc, but requires parents to tie the money up for five years.
  • Parents can invest between £50 and £250,000 into the account, but once opened further additions and earlier access is not permitted.

Northern Rock – Little Rock Instant Access

  • If parent want an account that can be accessed at any time without penalty then Northern Rock's Little Rock Instant Access could be the answer.
  • The account pays 3.00pc and parents can invest up to £10,000 into the branch based account.
  • An adult must be made trustee of the account and must be present when a withdrawal is made.

Halifax – Children's Regular Saver

  • The Children's Regular Saver account offers a market leading rate of 6.00pc, which is fixed for one year.
  • Parents can invest between £10 and £100 per month into the account.
  • The contributions can be amended each month, but must remain within these limits.
  • Earlier access is available on closure only.

Download FREE Child Savings Plan brochures

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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