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It is a very good idea to try and get your children into the savings habit while they are still young, as this is can set a positive precedent for their future financial behaviour, and help to educate them about financial matters. The vast majority of building societies and banks offer accounts that can be used by children, and most of them offer some kind of gift to encourage them to sign up, such as a wall chart or a piggy bank. If you are under the age of 18, you do not have to pay any tax on the interest that you receive from an account. As a result, most childrens accounts have fairly high net interest rates. You might want to seek out an account with a high fixed rate, rather than a variable rate, as this will make the account more rewarding financially, and easier for your child to understand. There are lots of different types of account available to children. An instant access account will allow your child to take money out of the account whenever they want to, which can be quite useful in some circumstances, but these accounts tend to offer the lowest interest rates. Notice accounts will generally offer higher rates of interest than instant access accounts, although if you take money out of these without giving the specified amount of notice, usually thirty, sixty, or ninety days, you will have to forfeit some of your interest. Notice accounts can be a good option for children because they prevent the holder from withdrawing money on a whim, which makes it easier for them to save up larger sums of money. An alternative option for young savers is to buy Childrens Premium Bonds. These do not pay a rate of interest, but instead are entered into a monthly draw, with a million pound jackpot and several smaller cash prizes. You can cash them in for their original value at any time, so there is no risk attached.
Article Source: http://www.casinoarticlessite.com
Milissa Darnstaedt is the author of this article. Santander have a range of great savings accounts available online today.
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