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Information on bank accounts for children

With the cost of living increasing with every budget, parents are finding it harder to help their older children out with items such as a deposit on a flat, buying a car or important University fees. Because of this, more and more parents are being encouraged to open bank accounts for their children and teach them the importance of saving from an early age.

The hardest part of opening bank accounts for your children is deciding which one is the most suitable for your child. Before you do anything, a visit to a comparison website such as MoneySupermarket or Go Compare will allow you to look through all the best interest rates, deals and benefits, all in one place.

Placing money in to trust for a child is basically investing, as a third-party will take the money and invest as they see fit. You can sell the investments while your child is still young, or allow them to expand until your child is old enough to make decisions about the trust themselves. You should beware of any hidden charges associated with the trust before you invest money.

A fixed rate savings account is probably one of the more popular options of a person looking to open bank accounts for their children. These are relatively safe options, as the money you put in will continue to grow at an agreed interest rate for a set period of time. Benefits to these accounts include financial bonuses if the account hits an agreed amount, which will encourage your child to keep saving all their pennies.

An instant access account is a regular savings account, with a flexible interest rate and one your child can access at any time. This is a good idea for older children or teens, who you may be teaching how to manage or budget their money. If your children are very young there are other account options which make more financial sense. Visit any bank and ask to speak to the manager about what they can offer you in terms of a quality account for your child.

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