Interest rate boost for loyal kids

Children of Abbey’s current account customers could benefit from a new eight per cent interest rate.

Launched today, the new youth account is for kids aged 11 to 18 and comes in response to the bank’s findings that high interest is the best incentive for young bankers.

Abbey says it is rewarding loyalty by offering the rate only to children of its existing customers.

Director of banking Steve Shore said: “Most kids let their parents set up a bank account for them anyway so this is a way of rewarding family loyalty. It’s one of the highest rates in the market for kids.”

He added that research showed young people to be “financially savvy” as just ten per cent of 11 to 15-year olds would choose a bank account based on free gifts or special offers, compared to 30 per cent who look for the best interest rate.

Lloyd’s TSB has come under fire this week for providing debit cards to children without informing parents.

© Adfero Ltd

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