Start thinking now about your Child's Future

A video game, a new bicycle, or a serious plan to attend a Master's Degree Programme in the USA? There is no doubt that simply an expensive toy that ends up being thrown into a corner and a substantial tip can be very useful in the future, when you have children.

Why are Children's Savings Plans so Important?

Ever since the birth or the baptism of your children begin to scrape together a colossal amount of money, far too large to be stored in the bank, which still remains a very valuable solution for small deposits and money management for daily expenses. For the loot, however, is unsuitable. This amount of money, indeed, if deposited into the proper account, can rise to become very useful in the future. We hope not to buy the scooter, but maybe use it for travelling and studying abroad.

How do Children's Savings Plans work?

Sometimes the smallest sum of money is "hosted" in the account so that parents make the most, but there is a risk of confusion and the impossibility, once the child grows up to 18, to directly manage their savings, despite the help of parents. For this reason the age range of bank accounts in recent years have increased considerably, including those who have not yet reached the age of majority. For the children (0 to 12 years old), it is not a real bank accounts but savings, without charge and government stamps, which entitle them to a number of additional advantages. The age group immediately above is the one that goes from 13 to 17 years old for which accounts have been designed storage free with unlimited transactions and the ability to perform various tasks at the counter such as:

• debit cards attached to the account (to withdraw money from an ATM, for example);
• taking advantage of useful services popular among adolescents (e.g. charging mobile phones or iPhone)
• using a top up card for online purchases.

You can find here below a comparison table showing a selection among the best offers currently available in the UK for your child saving plans:

Source: Financial Magazine "My Egg Nest" by Bright Knight Ltd.

Among the various types of savings account you can consider for children, many of these accounts are often linked with the possibility to apply for funding loans, life insurance policies subscribed by the parents and so many more discount opportunities such as the purchase of books at advantageous prices and other products. The lending rate are hovering around 3% on average.

Savings or Checking Accounts for your Child?

Open a savings account is the easiest and cheapest way to keep their pennies safe, and is particularly suitable for beginners to deal with money management. The book, to be explained to the kids, is the document to be presented at the counter every time you want to check out or pay cash. Each transaction is noted on this book so that the child can easily manage the "income" and "outputs" and check the ability to save or, conversely… to drain the deposit account!

How to Open a Savings Account for your Child?

Parents must go to the bank and sign a contract for a children savings plan. They will bring in larger bank tips or withdraw money if their son or daughter wants to make a major purchase. Unlike the current account, the savings deposit is meant only for operations for payment and cash withdrawal: there are no check books, credit cards and other services for the current account but only the opportunity to go to the bank to withdraw or pay. Some of the bank savings accounts for kids include a card empowered to perform the same operations from the ATM (Automatic Teller Machine).