Britannia Building Society is claiming that its child savings option offers a "leading rate".
Some 50,000 child trust fund savings accounts have been opened with the society in the two years since their inception, while factors such as peak birth periods have also driven the number of vouchers invested.
Britannia's child savings option features an interest rate of 4.75 per cent - rising to 6.5 per cent on the tax-free option - with a bonus incorporated.
Additionally, since the rate was raised from 6.25 per cent in September, more parents have chosen to take advantage of the savings option, the company notes.
Nick Pagon, savings product manager at Britannia Building Society, said that the child savings option was a great opportunity provided by the government, which parents should not miss out on.
"If parents don't take any action, the Government will invest it for them," he remarked.
"By removing the choice of financial provider, the voucher may not work as effectively for the long-term benefit of the child."
A recent study from Nationwide Building Society found that most MPs believe more action should be taken to encourage the savings habit in youngsters.
Britannia claims child savings dominance
Britannia claims child savings dominance
Fri, 22 Dec 2006
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