New research from independent financial researchers Defaqto has revealed that childrens savings accounts have failed to avoid the interest rate cuts, with banks offering a miserly 1.13 per cent on average. While that figure is well below the average of three years ago, the research did reveal a huge variety in the interest rates being offered.
Banking specialist at Defaqto, David Black, urged savers to shop around for the best deal, as rates vary by almost 6 per cent. The Halifax Children's Regular Saver account is the highest paying children's account, offering a gross rate of 6 per cent AER, as long as a minimum of £10 is deposited every month. The 11-15 Bank Account from Santander is also likely to prove popular, paying 5 per cent interest with no monthly minimum deposit. Mr Black affirmed the importance of getting children into the habit of saving to try to keep them debt free as they grow up.
Conversely, some savings accounts are paying as little as 0.05 per cent interest, requiring a balance of £100 to active this nominal rate. Some of these accounts are instead providing savers with free gifts as a means of enticing new deposits.
Banks Cut Childrens Savings Accounts Rates
Financial Services > e-banking > Banking news
Banks Cut Childrens Savings Accounts Rates
Fri, 09 Apr 2010
Recommended links
Savings Bonds GuideTax Free ISAs
Reclaim Bank Charges
Internet Banking Advice
Pension Providers
Bank Reveals Increase in Savings Levels
Banks Ponder Finding that One in Seven Brits Has Never Saved
Savers Advised to Look Beyond Banks for Best Rates
Miserly Banks Offering Lowest Ever Savings Rates
Bank of England Vote to Hold Interest Rates
Banks Offering Better Rates on Savings Accounts than ISAs
NS&I Increases Rates to Compete with Rival Banks
Financial Experts Claim an Increase in Savings Returns Despite Low Bank Rates
Bank of England Vote Unanimously to Hold Interest Rates
Bank of England Holds Interest Rates Despite Positive Signs
Bank of England Forecast to Hold Rates Well into Next Year
Bank of England Reveal Meagre Savings Rates as Savers Go Long
Bank Cuts Interest Rates
Banks Increase Savings Rates
| Banking news |
|---|
| Banks failing on online fraud says MPs report - Tue, 05 Apr 2011 |
| Lloyds TSB is to change the interest rates on its Vantage current account - Thu, 31 Mar 2011 |
| Contactless debit cards from Lloyds TSB - Tue, 29 Mar 2011 |
| More News |
Simplyhealth Dental Plan
Affordable cover from only £7.50 per month. Join now and get first month FREE
Amex Cash Back
Credit Card
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company