Grandparents saving for future generations

British grandparents are saving over £1,000 a year for their grandchildren, according to research published by Cheltenham & Gloucester.

Grandchildren may be handed nest eggs of up to £20,000 as a result of their grandparents putting money away in accounts offering some of the best savings interest rates on the market.

The C&G study found that 27 per cent of grandparents get into the habit of saving as soon as a grandchild is born, making average contributions of £1,094 a year.

Emma Hunter, head of savings products at C&G, said: "It is very encouraging to see grandparents saving for their grandchildren.

"This not only provides a good nest egg for many children as they embark upon their adult life, but also demonstrates to the children the benefits of established savings habits."

However, 54 per cent of respondents said they do not have the financial means to save money for their grandchildren.

Recent figures from the Association of British Industries ABI revealed that savings accounts, stocks and shares and national savings have all seen a rise in popularity in recent months as confidence in property investment has dropped.
 

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2011-01-31 16:18:21 © Moneyextra.com