Children living in the East Midlands have the highest average savings account balances in the country in relation to how much pocket money they receive, it has been found.

According to research from Halifax, ‘East Mids Kids’ have an average £1038 in their savings accounts, despite receiving just £231.92 a year – the equivalent of saving every penny of their pocket money for four years.

Children from the South East would have to save for less than four years to accrue their average savings balance of £1115, and children living in the South West would take the same amount of time to accumulate their average balance of £934 from their annual pocket money of £238.16.

While Scottish children receive the second highest pocket money on average, £426.40 a year, they are the worst savers, with the lowest average savings balance.

Predictably, children in Greater London are the most cash rich, enjoying the highest average amount of pocket money (£440 a year) and the highest national average savings balance of £1379.

For most British children, it would take more than three years of putting aside all of their pocket money, the average of which is £613, to reach the national savings average of £1049.

“It is heartening to see that children are saving.” said Ken Stannard, head of Halifax savings accounts. “It is important to encourage a good savings habit at an early age and explain the need of financial planning for the future.”

Compare children’s savings accounts »

© Fair Investment Company Ltd