Nationwide's Smart savings account holders have savings account balances in excess of £2 billion, the bank has revealed.
The one-and-a-half million children saving money in the Smart savings account are usually extra busy in the summer, with July being the busiest transaction month.
The Smart savings account pays 5.01 per cent AER, and new applicants for the savings account receive welcome packs with discount vouchers and ongoing competitions.
Nationwide has revealed that one in every six young Britons who are saving money, do so with the Smart savings account.
Steve Clode, Nationwide's marketing director commented on Alliance & Leicester's children's savings account because of an apparent lack of demand: "We certainly see no 'lack of demand' for children's savings accounts."
"At a time when there is great concern about levels of savings it is reassuring to see that children with Nationwide savings accounts actually save more than they spend, and parents and children show an understanding of the importance of saving from an early age," Mr Clode said.
He said that by providing a savings account that consistently offers good value is important so young people would feel encouraged to be saving money.
"Attracting children with high headline rates, which are subsequently cut, could be regarded as a cynical ploy and it may backfire in the long run as it could erode trust in financial services organisations," Mr Clode added.
Children keep saving money with Nationwide's Smart savings account
Children keep saving money with Nationwide's Smart savings account
Thu, 30 Jun 2005
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