|
|
 |
Children’s Savings Accounts
There are a large number of banks and building societies across the UK offering savings accounts for children. It is important to choose the right establishment so that you earn a healthy interest. Accounts are typically of three types:
These are the simplest accounts and can be opened with as little as £1. Access is granted immediately and funds can be withdrawn at any time.
With notice accounts you need to inform the bank in advance of any withdrawals you wish to make. Alternatively, you may get only limited number withdrawals in a year. In return, you earn a better interest rate.
In case of bonds your money remains in the account for a fixed period of time, usually three years or more. Interest rates are higher than Deposit and Notice accounts.
Some accounts even give you free gifts for your child. Gifts could be toys and birthday cards for younger children and vouchers and CDs for teenagers. However, these should only be considered strictly as “gifts” designed to attract new customers, and you should not choose your financial institution on the basis of these gifts. |
|
