Nationwide Building Society are shaking up the children’s savings market with a new “future saver” account that will pay 3.5% AER.
Designed to allow parents to save for their children’s future this new account sets a precedent for interest paying account for youngsters.
The caveat is that parents will need to hold their main current account with Nationwide (FlexDirect, FlexAccount or FlexPlus). Parents who do not hold their account with Nationwide will still receive a competitive rate of interest of 2.50% AER.
The account has a maximum deposit limit of £5,000 pa, with one withdrawal a year allowed. More withdrawals can be made but this will impact on the interest you receive.
The savings account is written in the name of the child but parents have full access to the money if needed.
“Many parents start to save for their child’s future as soon as their child is born. They have aspirations and dreams for their child right from the start and want to do all they can to put them on the right path for when they start their adult life.
“The account also allows parents to educate their children on why getting into the savings habit is an important life skill. Putting away a few pounds of pocket money or cash presents from family and friends on birthdays and Christmas can soon help the total build up.
“Our new Future Saver account offers a highly competitive rate of interest to help parents and children save for the long term so that their dreams can come true, whether it’s funding a place at university, buying a new car or getting on the housing ladder.”
Tom Riley
Director of Savings
