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Information on opening kids bank accounts

Perhaps one of the most useful things you can teach a child is how to save and budget their money. Opening kids bank accounts as early as you can will teach them that putting money away for their future is important as well as teaching them good habits, which will hopefully last through adulthood.

If you want to start small and fairly uncomplicated, you can open an account for your child at your local bank or building society. When opening kids bank accounts try to find a bank that is close to the area you live in. This will give your child even more inventive to save if they get to visit the bank themselves and deposit the money.

Before choosing the account that is best for your child, visit an online comparison website. Just because they are kids bank accounts does not mean you will not get special offers and benefits. It is worth comparing each bank and building society, to see who is offering the best deal. Beware of the accounts that come with free items such as piggy banks or soft toys, these are often used as a distraction from the less than impressive interest rates. Of course, there are banks who offer free items and good interest rates, but remember this is about achieving the best for your child's savings, so free items should only be considered a bonus.

The Halifax Children's Regular Savers account offers the best interest rate at an astonishing 10% APR, this is fixed for 12-months at which time it drops to a still impressive 5.5% APR. The only catch to this account is your child is restricted to depositing no more than £100 a month. Another offering outstanding kids banks accounts is the Scarborough Building Society. They offer a 3-year fixed rate of 6.25%, with a minimum investment of £150. The only downside to this account is it only permits one withdrawal a year, penalty-free.

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