A savings account is the Christmas gift that keep giving

In the current economic climate providing for children will be the main concern for many parents and the Association of Investment Companies AIC believes that investing money in savings accounts could be the perfect Christmas gift.

The organisation said that a one-off £100 lump sum invested in an account offering the best savings interest rates could grow to £650 over 18 years.

A regular deposit of £100 each year as a Christmas gift could grow to £4,702, more than twice the cash value and far outweighing the benefits of the latest must-have gadget or computer game.

Ian Overgage, acting communications director of the AIC, said that the increasing burden of housing and university costs mean that children will benefit from a saving account.

He added that it may be difficult to convince them of this on Christmas Day, however.

"Investing in an investment company or children's saving scheme could make gaining a degree or buying a new house a more affordable goal," Mr Overgage stated.

The government is planning to outline further plans for its Junior ISA scheme in the spring of 2011.
 

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-12-08 12:50:58 © Moneyextra.com