Principality’s pocket money account pays a top 4% on savings up to £250 a month

Principality’s pocket money account pays a top 4% on children’s savings with up to £250 a month that can be paid in

A new children’s account with Principality Building Society pays a top 4 per cent on savings of up to £250 a month.

Adults face a confusing array of different types of children’s accounts.

Some banks and building societies home in on parents and relatives who want to build up a lump sum for when their children reach adulthood.

Principality Building Society’s new children’s account pays a top 4 per cent on savings of up to £250 a month

Others, such as Principality’s new Learner Earner account, aim to teach kids the importance of savings and handling money. 

You don’t have to add to the account every month. But a £20 a month saving would be worth £245.20 after a year. If you paid in £250 each month you would have £3,065.

On top, savers will also get a £10 voucher on the first and second anniversary of opening the account to spend where they like or add to their savings.

However, the account is only available through the building society’s 53 branches and agencies in Wales and some border towns. You cannot open it online or by phone.

Halifax pays a higher 4.5 per cent on its Kids’ Monthly Saver but you can only save up to £100 a month and the rate lasts for one year. 

Other good children’s accounts include Virgin Money Young Saver and Mansfield BS Young Saver which both pay 2.25 per cent. 

Lloyds Bank and Halifax Kids’ Saver pay 2 per cent.

The Principality account is aimed at adults saving for children, and is unusual as the adult can keep control of the any money until the child reaches 18.

Whereas with other basic accounts the child normally gets control of the money when they reach 16.

[email protected]

Source link