Shop around for a children's account this Christmas
Published On 22 November 2006
Parents are being advised to shop around for the best children's accounts to ensure that their kid's Christmas cash reaches its full potential.Many relatives like to give children money for Christmas so that it can be put away and used when they reach adulthood.
However, a study by MoneyExpert.com has found that it is imperative to look for an account that offers a good rate of interest, as there a number of miserly deals out there that Scrooge himself would be proud of.
The lowest interest rate on a children's account was found to be 1.49 per cent, well down on the 4.125 per cent average.
Sean Gardner, the chief executive of MoneyExpert.com, remarked: "Investing cash for kids in a savings account is a good way to get them used to the idea of saving.
"However if you are taking out a savings account for a child it’s worth making sure the money lesson is a good one. There are plenty of good deals out there so it is easy to find one that will deliver the best value for your child."
The study found that the best children's accounts had interest rates of 5.25 per cent.
