Abbey has advised parents to consider taking out savings accounts after the bank claimed that 28 per cent of British parents with young children have no savings or investments to fall back on. To try to entice parents into saving, Abbey has opened its Fixed Rate Monthly Saver paying 4 per cent interest, while customers only have to deposit £20 a month. Savers may deposit up to £250 per month and Abbey claims it is the ideal account for parents to build up a lump sum.
Since the onset of the economic downturn, banks have slashed interest rates on savings accounts limiting the incentive to save. ISAs have suffered a similar plight and are yielding even more meagre returns than the average savings account .
More to the point, however, some young families are struggling to keep up with repayments on mortgages, loans and credit cards meaning saving is not currently a priority. Indeed, recent research has found that the cost of bringing up children is on the up, further limiting the ability of parents to save.
Abbey's Director of Savings and Investments, Reza Attar-Zadeh, called on parents to save money each month, stating that a rainy day fund is essential.






