Regular Saving Parents Can Provide Nest Egg Worth £30K - Savings - News - Moneyfacts

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Regular Saving Parents Can Provide Nest Egg Worth £30K

Regular Saving Parents Can Provide Nest Egg Worth £30K

Category: Savings

Updated: 31/10/2008
First Published: 25/02/2008

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 It is now over 6 months old so the content may be out of date.

Parents whose children are born on 01 April 2008 can look forward to receiving £21,049 in weekly child benefit payments before their child turns sixteen.

Data analysis from Norwich and Peterborough Building Society (N& P) reveals that with a little prudent financial management, parents who choose to save this cash can turn these payments into a lump sum of almost £30,000.

Child benefit is currently a payment of £18.10 every week. By simply choosing the best possible branch based account, parents can ensure they are able to use the money if they need it, or put it to one side to provide for the future. By comparing other top rate monthly savings accounts against N& P's new Family Regular Savings Account, the Society calculates that parents could provide their children with an extra £5,949 simply by making an informed choice.

Account name/Product

Gross interest rate

Amount saved after 16 years

Abbey Fixed Monthly Saver

7.25% year 1
3.4% year 2+

£23,487

Halifax Regular Saver (no branch access)

7.00% year 1
5.10% year 2 +

£27,336

N& P Family Regular Saver

8% year 1
6% year 2+

£29,436


Table 1: Amount saved when weekly child benefit is paid into different best buy accounts

N&P?s new Family Regular Saver Account is designed to make a family?s money work as hard as possible, whether they?re saving for the short-term, such as Christmas or holidays, or long-term to help provide for the future. All three of the Society?s Family Savings Accounts also allow easy deposits via a branch network with online banking facilities. This offers ease when making regular weekly payments and allows face-to-face contact with branch staff, which is still considered important amongst N& P customers.

Gary Lacey, Group Product Manager at N& P, commented: "The research highlights the significant amount of money that can be saved when parents make the decision to start saving and choose where to put their child benefit allowance wisely.

"By forming a habit of making regular deposits to a savings account such as N& P?s Family Regular Saver, a significant sum of money can be built up over time."

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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