Britannia Building Society has boosted the interest rate on its child trust fund savings accounts.
The society will change the rate on interest to 6.25 per cent on the tax-free savings options, with the alteration becoming effective on September 2nd.
Britannia claims that the alteration will be of benefit to many parents, as September is an "essential time" to take up the savings accounts, with a baby-boom expected in the month.
Nick Pagon, savings product manager at Britannia Building Society, said: "Child Trust Fund accounts have been specifically designed to work for the long-term benefit of the child.
"Our non-stakeholder cash child trust fund has an excellent variable rate of interest, is tax-free and there is no risk to the child's savings.
"With an interest-rate of 6.25 per cent gross/tax free, it is one of the best on the market."
Mr Pagon added that it is important for parents and guardians invest their vouchers in the savings provider of their choice, as the government will do this for them if they fail to act, thereby removing their choice.
Recent figures from the Building Societies Association showed that July had the lowest take up for the child savings accounts since their inception.
Britannia improves savings deal for children
Britannia improves savings deal for children
Wed, 30 Aug 2006
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