Setting aside money for a child’s future is something many parents, grandparents and other relatives wish to do.
Putting the cash into a high-interest savings account can give youngsters even more of a financial boost.
Interest rates have been rising in the past couple of years, with the Bank of England raising the base rate 14 consecutive times, before maintaining it since August this year.
There will be lots to think of when it comes to choosing a children’s savings account – such as whether to lock the money away in a fixed account or put it in an easy access option.
Interest rates on savings have been rising in the last couple of years amid 14 consecutive base rate hikes
GB News has compiled a list of the best children’s savings accounts according to the rate being offered, correct at the time of writing, based on data from money comparison site Moneyfactscompare.co.uk.
However, it’s important to note that some of these options won’t offer fee-free withdrawals during the fixed term period.
Kent Reliance is at the top of the list, with its One Year Fixed Rate Bond - Issue 134.
Withdrawals aren’t allowed with this account, which pays 5.58 per cent AER.
The minimum balance is £1,000 and the maximum investment is £1,000,000 – although the Financial Services Compensation Scheme (FSCS) only protects up to £85,000 per person, per financial institution.
Saffron Building Society pays a 5.50 per cent AER interest rate on its Two Year Fixed Rate Children’s Bond.
As the name suggests, this is a fixed-term account, and the minimum opening balance is £500. The maximum limit is £25,000.
Coventry Building Society has a Young Saver account, currently paying 5.25 per cent AER.
The account can be opened with £1 and up to £5,000 can be held in this account.