Savings interest rates 'vary on child accounts'

Parents should be comparing the market for the best savings interest rates available for their children's savings, it has been claimed.

According to Defaqto banking specialist David Black, there is a significant difference between the most and least attractive rates available on the market.

These can vary from 0.05 per cent plus free gifts to six per cent on child savings products, he claimed.

Mr Black stated: "It is important to get youngsters into the habit of saving and for many this will involve visits to the local bank or building society.

"There are a wide variety of different children's savings accounts available with some that offer free gifts, but it's the interest rate parents should examine with great detail."

The Bank of England has kept its base rate at 0.5 per cent since March 2009 in an attempt to encourage higher levels of consumer spending during the economic downturn.

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2010-04-07 13:28:33 © Moneyextra.com