A series of best savings account deals designed for parents saving for their children have been launched.
Yorkshire Bank and Clydesdale Bank, both part of the National Australia Bank, last week launched the Child savings Bond, offering one of the best savings account rates of five per cent before tax, fixed for five years.
The best saving account deal available from the Yorkshire Bank also has a minimum deposit of £50, far lower than most. A £100 lump sum invested would become £127.63 over five years while £500 would become £638.14.
Standard Life Bank’s children’s best saving account pays 4.9 per cent over five years, but requires a minimum deposit of £1,000.
Parents looking to make regular payments into their children’s best savings account should choose the Halifax children’s regular money saver, which pays ten per cent, almost double the next best savings account, for a period of one year.
Parents must make a minimum deposit of £10 a month, up to an overall maximum of £100 a month or £1,200 a year. Saving £100 a month would produce £1,265 after a year.
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