Best Children's Savings Account 2014

Last updated: Dec 27th, 2013
Feature by Rachel Lacey

All children should have a simple and straightforward savings account that pays a decent rate of interest and offers instant access to their money.

These can be a great way of teaching kids the benefits of saving, an understanding of how interest works and can help them meet their own savings goals - be that a new bike or a contribution to their school ski trip.

Tax won't usually be a concern unless money paid in by one parent generates interest in excess of £100 a year (in which case tax will be applied at their rate) or in the unlikely event of the child's income exceeding their personal allowance (which is the same as adults).

Judge Anna Bowes, director of Savingschampion.co.uk, says: "We looked at all easy-access accounts available nationwide and picked the accounts that we feel have offered the best returns over the past two years."

The award this year goes to Beverley Building Society. "The account is available nationwide as you can manage it by post - unless you live in East Yorkshire - and the rate has remained consistent at 2% since 1 July 2011," says Bowes.

The runner-up in this category is the Young Savers Account from Lloyds and TSB. "This would have been our winner, but the big caveat on this account is that in order for a child to open it, the parent or guardian also needs to have a Lloyds or TSB current account. The rate is a market-leading 3% AER and has been since its launch in August 2011, so it has remained consistent even though savings rates have been plummeting."

Methodology

Best children's savings account 2014

WINNER: BEVERLEY BUILDING SOCIETY YOUNG SAVERS
Current rate: 2%
Interest paid: Annually
Minimum deposit: £1
Maximum balance: £350,000
Contact: 01482 881510
beverleybs.co.uk

HIGHLY COMMENDED: LLOYDS AND TSB YOUNG SAVER

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