Product focus: Children’s accounts - Savings - News - Moneyfacts


Product focus: Children’s accounts

Product focus: Children’s accounts

Category: Savings

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

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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

6 of the best monthly interest savings accounts

Monthly interest savings accounts pay interest on your savings each month – as opposed to yearly – and therefore allow you to take a regular income from your hard-earned cash.

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.