Getting in the savings habit, how to save for your children and grandchildren

Changes in the economy, the way we buy houses and from central government, particularly with regard to higher education, means that saving for your children or grandchildren has never been more important. The introduction of the new Junior ISA (Individual Savings Account) later this year may shake up the children’s savings market but in the meantime we thought we would take a look at some of the main things you need to consider when saving for your child or indeed grandchild’s future. What are you saving for? Being clear about what you are saving for is important,  whether it’s school fees, the costs ...

Poor interest rates on children’s savings accounts

Scandal of poor interest rates on children's savings accountsA new survey has highlighted the poor interest rates on many children’s savings accounts. The survey by Which? Money found that half of the easy access savings accounts designed for children paid interest of less than 1% gross AER. The worst offender was First Trust Bank whose Junior Saver account pays an interest rate of just 0.05%. Inflation Such paltry rates of interest are significantly below inflation meaning that the buying power of the savings will be eroded ...