A lot of parents are still contemplating opening accounts for their little ones. However, if you are looking for the best kid’s savings account, a best child savings account in the UK or a Nationwide child savings account with good interest rates then you have come to the right place.
In this post, we will discuss:
- The Best Kids Savings Account From Different Types Of Banks
- How To Choose The Best Child Savings Account In The UK?
- Nationwide Child Savings Account To Best Suit Your Needs
- The Best Ways You Can Save Money With LDV
The Best Kid's Savings Account From Different Types Of Banks
There is quite a number of kid's savings account available from different banks. Finding the right one can be a challenge for many. However, here at Love Discount Vouchers, we have got you covered. Let’s have a look at the different types of children’s savings accounts.
Easy Access Best Kids Savings Account
This type of account allows you to deposit money and withdraw at any time without notice. It is also best for saving significant sums of money. Interest rates on this account vary from bank to bank. The top 3 banks with the highest interest rate are:
- HSBC - with the child's savings account you get a 4.25% on £10 to £3,000 positive balance. They offer debit cards and the minimum age to open is 7 years and up to 17 years of age. It’s easy to open if a parent or guardian has an HSBC current account.
- Leeds Ronnie The Rhino Youngsaver - This one offers a 3.9% on £10 to £1m positive balance. No debit card is available, children from 0 - 17 years can have an account. You can apply at the branch or by post.
- Kent Reliance Demelza - offers 3.65% on a £10 to £25,000 positive balance. No debit card is available and children from 0 - 17 can have an account. You can apply at the branch or by post.
Notice Accounts
This account allows you access to funds available for as long as sufficient notice is given, normally around three months. Interest rates on notice accounts tend to be higher than easy-access accounts. This account allows you to save less money each month. There are several choices - what's best for you depends on how you want your account to be opened and whether you need access to funds.
Halifax offers the highest interest rate of 5.5% and allows you to open an account online, but you can only save up to £100 per month and no withdrawals. Saffron BS charges a 5.05% fee for unlimited withdrawals but can only be opened by mail or branch.
Regular Savings Account
Regular savings accounts need money paid each month to be invested for a period of 12 months. Check out these regular savings accounts you can use for your children:
- Regular savings withFirst Direct pay up to 7%, the highest savings rate. The rate is fixed for one year and you can save up to £300 a month, but you cannot withdraw - if you withdraw, the account will be closed and you will receive a lower interest rate of 1.3%.
- Alternatively, Barclays Rainy Day Saver Blue Rewards members can earn up to £5,000 by paying 5.12%. It is not a regular savings account (you have the option to pay £5,000 on the first day), so it is more flexible than other accounts. The exchange rate here is different, so you need to be careful.
Fixed-Rate Bonds
This account helps grow your investment. Usually, the money you invest can be kept for longer periods of time - 1 - 5 years. During this time the interest in the account accumulates and increases the money initially invested. The longer you invest your money the higher the interest rate will be.
Junior ISAs
Junior ISAs work similarly to adult ISAs. The difference is that with a Junior ISA, you can only pay up to £9,000 compThe annual allowance can either be paid out into a Junior cash ISA or a Junior stocks and shares ISA or paid out on both. These funds cannot be accessed until the child is 18 years of age.
How To Choose The Best Child Savings Account in The UK or Nationwide Child Savings Account
Choosing the best child savings account in the UK or nationwide child savings account really depends on how you would like to manage the money invested, how you would like to access it and how frequently. Let’s have a look at a few things you need to consider:
- Interest rate - This is very important because the main thing when opening a kid's bank account is that we want that investment to grow. So, looking for a bank that offers the highest interest rate is the best. Be careful of how long the rating period lasts because some may have a high-interest rate at the beginning and have it drop after a certain period.
- Encourage to save - If this is your main reason, then you’ll need to consider the regular saver. This is ideal because then it will encourage your little one to save up their pocket money regularly.
- Long-Term Investment - Junior ISAs are more idealistic if you want to lock away money and let it grow until they are 18. This type of account offers a higher return because money is locked away for longer periods and accumulates at a maximum rate.
The Best Ways You Can Save Money With LDV
If you are looking for an easy way to save money, we can help you regularly whenever you want. We provide many tools, coins and tips to help you save money easily.
- Determine how much and when you want to deposit into your savings account. The bank app will calculate how much you need to save daily, weekly or monthly. It will help you track your progress. You can rename saved accounts according to yourself and your purpose.
- Whether you want to save a small amount or make a big deposit, we can help you find the right savings account for you by answering a few simple questions.
- Try out the 1p save contest for a year and you can end up with a large sum of money at the end of the year effortlessly.
- Try a spend-free weekend. Once a month try and have a ‘spend-free’ weekend where you don’t spend a single buck on anything. Use what you have at the house and see how much you save at the end of the month.
- When shopping online see if you can find the best deals or discounts to use. Websites like Love Discount Vouchers offer great discount codes on 1000s of brands. Simply sign up and get exclusive deals delivered to your inbox daily.
