News Column

Saturday Money: Yorkshire's 5% account is child's pay

July 12, 2014

Rupert Jones



If you want an above-average savings rate, you need to be - or have - a child. Interest rates on children's savings accounts are often a lot better than those on standard adult accounts.

Today sees the launch of a kids' savings account paying an impressive 5%. The "Celebratory Children's Saver" has been unveiled to mark Yorkshire building society's 150th birthday. But to be eligible, the adult or child needs to be a member of the Yorkshire.

It is a one-year regular savings account where people can pay in up to pounds 150 a month - ie, a maximum of pounds 1,800 over the year. Adults who have been society members for at least two years can open the account on behalf of a child aged up to 15. Alternatively, 11- to 15-year-olds who have been society members for two years or more can open one themselves.

Anyone, including relatives and friends, can pay in, and after a year it will mature into one of the society's existing children's savings products. Children have some access to their money if needed; they can make up to four withdrawals during the year.

The account can be opened in person in branches and agencies of the Yorkshire, as well as those of Norwich & Peterborough, the Chelsea and the Barnsley, from Monday.

In other kids' savings news, the Halifax has cut the headline rate on its Junior Isa from 6% to 4% for new customers with immediate effect, and from "early next year" for existing customers. To get 4%, mum or dad (or whoever the adult contact is) has to hold a Halifax cash Isa. If they don't, the rate is 3%.

Captions:

Celebrate pounds 1,800 a year in the bank



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Source: Guardian (UK)


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