It might not seem like the most obvious idea, but opening a savings account for your child for Christmas could be one of the best presents ever. In the years to come, your children are likely to spend tens of thousands of pounds on university, a deposit for their first home, a car, or even a wedding. Opening a children's savings account could be the boost they need to get them into a savings habit from an early age.
Here is our selection of the best child savings accounts currently available:
Leeds BS – Young Investor 5 Year Fixed Rate Bond
This account from Leeds BS pays a rate of 3.50% yearly. Investments range from £100 to £1m. Penalty free access is available for 25% of the capital and up to the age of twelve any withdrawals made must be signed for by a parent or guardian. This account is available to savers aged seventeen and under and can be operated in branch or by post.
Northern Rock – Little Rock Instant Access
The little Rock Instant Access account by Northern Rock pays 3.00% yearly. Savers can invest between £1 and £10,000. Instant access is permitted although an adult must be named as trustee and be present when withdrawals are made. This account is available to savers aged sixteen and under and can be operated only in branch.
Natwest – 5 Year Children's Bond
This bond from Natwest pays 3.00% on maturity. There is no limit to the amount that can be invested but there is a minimum deposit of £1,000. No early access is permitted. This account is available to savers aged fifteen and under and can be operated only in branch.
Find the best savings rates for your child - Compare savings accounts
Read our Changes to Child Trust Funds GuideDownload 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 Any products featured may be withdrawn by their provider or changed at any time.
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