Looking for a good savings account for your child can be quite tricky. Savings rates tend to be higher for children’s accounts and so this can mean that it is certainly worthwhile finding them an account especially designed for children. However, there are a range of accounts form trust funds to instant access accounts and it can be difficult knowing what to choose.
It is worth thinking about what type of account to get your child and whether you might want more than one. Some of the options are listed below –
Once you have decided on what type of account or accounts you feel would suit your child you then have to pick between the different providers. There are many that offer children’s accounts because they hope that they can get loyalty form that child who may then keep their money with them as they get older. Rates are therefore pretty competitive. They do vary though and they may change as well. So, if they have an instant access account make sure that you keep an eye on changes in the market as there may be better rates available if they swap to a different bank or building society.
There are websites which compare the rates of savings accounts including those designed for children and so these can be very useful, both in choosing the accounts to start with and then tracking them to see which are the most competitive with regards to interest rates. They can be useful places to visit and to keep track of whether your children are getting the best rates they can.
Of course, there may be other factors that might determine who you go with. You may like it to be a place that has a local branch so your child can go in and pay in their money and handle the coins and chat to the teller. This is all part of showing them how finance works. You may not worry so much about this if you feel that the future will be online banking anyway and so it could be unlikely that they will want to go into a bank when they are older anyway. You may also be interested in the reputation of the bank or building society, whether you feel you can trust them and if you have heard of them. Alternatively, you may want them to use the bank that you currently use. It is worth having a think about your reasons for wanting them to use certain banks or building societies and whether those are good reasons. If you do not know the ones with the best interest rates then take some time to find out more about them before you dismiss them.