Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Bubble 2025 - 11th Feb 25
Fed Interest Rate Cut Probability - 11th Feb 25
Global Liquidity Prepares to Fire Bull Market Booster Rockets - 11th Feb 25
Stock Market Sentiment Speaks: A Long-Term Bear Market Is Simply Impossible Today - 11th Feb 25
A Stock Market Chart That’s Out of This World - 11th Feb 25
These Are The Banks The Fed Believes Will Fail - 11th Feb 25
S&P 500: Dangerous Fragility Near Record High - 11th Feb 25
Stocks, Bitcoin and Crypto Markets Get High on Donald Trump Pump - 10th Feb 25
Bitcoin Break Out, MSTR Rocket to the Moon! AI Tech Stocks Earnings Season - 10th Feb 25
Liquidity and Inflation - 10th Feb 25
Gold Stocks Valuation Anomaly - 10th Feb 25
Stocks, Bitcoin and Crypto's Under President Donald Pump - 8th Feb 25
Transition to a New Global Monetary System - 8th Feb 25
Betting On Outliers: Yuri Milner and the Art of the Power Law - 8th Feb 25
President Black Swan Slithers into the Year of the Snake, Chaos Rules! - 2nd Feb 25
Trump's Squid Game America, a Year of Black Swans and Bull Market Pumps - 24th Jan 25
Japan Interest Rate Hike - Black Swan Panic Event Incoming? - 23rd Jan 25
It's Five Nights at Freddy's Again! - 12th Jan 25
Squid Game Stock Market 2025 - 5th Jan 25

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Children’s Savings Account Rates Worsen

Personal_Finance / Savings Accounts Oct 26, 2015 - 12:55 PM GMT

By: MoneyFacts

Personal_Finance

The latest research by Moneyfacts.co.uk reveals that some child savings accounts have received shocking rate cuts over the course of 2015, with some deals now paying as little as 0.10% yearly.

The average children’s savings account currently pays 1.56% yearly*, down from the 1.61% paid a year ago. While this may seem like only a small drop across the market, this average masks the fact that some individual deals have had severe rate cuts.


So far this year rate cuts of up to 0.74% have been applied to rates on child savings accounts, with providers such as Bank of Scotland, Lloyds Bank and Halifax all dropping their rates. Worse still, TSB plans to reduce its rate of 3.00% on its Young Saver account to just 1.00% AER in November – a significant cut.


Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“It’s clear to see that parents or grandparents who have opened a savings account for their child or grandchild must keep a close eye on the interest rates paid. Changes to rates in this sector have been rare in the past, so it’s disappointing to see that some of the main bank brands that dominate this market are now choosing to reduce the rates they pay. Other providers could also follow suit; most rates in this sector are variable, so they could change at any time.

“Those unhappy with their current deal would be wise to jump ship and open a more attractive account elsewhere. In particular, parents shouldn’t forget the perks of opening a Junior ISA, as these are currently paying the best rates on the market for children and can mature into an adult ISA when the child turns 18.

“November will mark the four-year anniversary of the launch of Junior ISAs, so now is as good a time as any to review where money is being put away for a child’s future and move any stagnant savings accounts, including old Child Trust Funds.

“To be eligible to apply for a children’s savings account on behalf of a child, customers may need to hold a current account with the same provider. Consumers must therefore weigh this restriction up carefully, especially if the bank charges a fee or has strict operating criteria on its current account.”

*The average children’s savings account rate is based on a £1,000 deposit and includes all variable and fixed rate children accounts apart from Junior ISAs.

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in