It is important that children understand the value of putting money aside into savings accounts, according to one expert.
Kevin Mountford, head of savings at moneysupermarket.com, said it was "vital" that children are taught about the advantages of saving from an early age.
Research by the firm revealed that by putting away £50 a month in a child savings account offering a 7.5 per cent AER could potentially result in a savings pot of £18,155 in 16 years.
"There is a great selection of children's savings accounts available with rates over the current Bank of England base rate of 5.75 per cent and there's an extra boost in the form of tax free interest ," Mr Mountford stated.
In related news, the Tax Incentivised Savings Association recently reported that more than half a million child trust fund (CTF) accounts are being topped up with additional contributions.
The organisation noted that direct debits were one of the most popular methods of transferring funds into CTFs.
"Vital" that children learn about saving
"Vital" that children learn about saving
Tue, 06 Nov 2007
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