Child savings accounts

Child savings accounts are bank accounts designed for parents to put money away for their children. The majority of high street banks and building societies now offer a range of childrens savings accounts.

Child trust funds (CTF’s) were stopped by the government on January 1st 2010 but there are alternatives such as bonds and junior ISAs. There are also savings accounts for children available designed for relatives to help savings for grandchildren.

Many childrens savings accounts on the market attract higher rates of interest than regular savings accounts and come with incentives such as gift vouchers. The type of accounts range from easy access child savers accounts with the option to withdraw funds at any time to fixed rate accounts that offer a higher rate of interest but less flexibility. Some child savings accounts restrict access to the funds until the child is 18 years old.

With so many savings accounts for children to choose from and a range of companies offering different incentives, finding the best child savings account can be confusing. However, your first criteria for choosing an account should be the interest rate on offer.

	Skipton BS launches five-year child savings bond paying 3.0% The Skipton Building Society has launched a new five-year savings bond aimed at parents investing on behalf of their children paying 3.0 per cent.
	Which? reveals low interest rates for child savings accounts Consumer group Which? has published a report that illustrates how low interest rates for child savings accounts discourages parents from saving on behalf of their children.
	Halifax raises Young Saver savings interest rate to 3.0% Halifax has announced that it is to raise the interest rate on its Young Saver savings account by one per cent to three per cent in a move that will benefit 400,000 existing customers.
	Junior ISAs: The key facts to the new child savings accounts Our ‘at a glance’ guide to Junior ISAs answers all your key questions and picks out some of the best options for saving in both cash and investment ISAs.
	Junior ISAs score higher returns than CTFs on 1st anniversary This week is the first anniversary of Junior ISAs. They replaced child trust funds and according to the Share Centre they are producing much better returns.