Parents looking to compare savings accounts in search of the best products on the market for their children may wish to consider a new offer from one financier.
Last week (August 15th),
Lloyds TSB unveiled its Young Saver deal, which provides an annual equivalent rate of three per cent on balances of as much as £20,000.
This can be opened by an adult on behalf of a child with a deposit of just £1, while the lender called on its existing Young Saver holders to head to their local branch as their interest rate will also be boosted.
Greg Coughlan, head of children's savings at Lloyds TSB, observed that this product has been designed to "invigorate" this area of the market and added: "Now more than ever is a really important time to teach the adults of the future the value of money management."
Recently, Save Our Savers urged the government to suspend income tax on savings in packages like ISAs to improve conditions for those trying to plan ahead financially.
It seems those living in the Edinburgh area understand this theory, as they have the highest total value of such accounts in the country, data from Alliance Trust Savings reveals.
Blackpool has over six times the national average account value, according to the sums in the company's First Steps child savings funds.
The option might be useful for those who already have and are looking for another way of setting money aside.
Head of sharedealing Garry Mcluckie comments: "Planning for your child's future has never been more important, especially given recent press coverage on the rising cost of a university education."
Another option is a Junior ISA, with the system recently clarified by the Treasury, following the abolition of the Child Trust Fund.
It allows people to place up to £3,600 per year in the accounts, which will be owned by the adolescent when they turn 18.
Meanwhile, consumers looking for a competitive savings account may also be interested in a range of new launched by one financier.
As of August 2nd, people can take out several fresh bonds packages from Santander, with all these products stretched over a duration of either one or two years.
For instance, the lender is offering a two-year fixed rate deal with a gross annual equivalent rate of 3.3 per cent, while anyone looking for a shorter-term alternative may instead wish to consider the one-year account at a figure of 3.05 per cent.
Santander has also added to its suite of bonds that track the Bank of England's base rate of interest - a figure that has been set at 0.5 per cent for more than two years - which may be ideal for those wanting to take advantage of any potential hike in the near future.
This comes after research by Scottish Widows established that many Britons with cash in savings accounts are unwilling to discuss their financial situation with other people.
