Child savings accounts

Advice on choosing the best savings accounts and bonds for your baby, plus the information on investing in child bonds.

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Family finances > Child savings accounts

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More than 70 banks and building societies offer savings accounts for children. The choice may be huge but some of the interest rates on offer are as low as 0.1%. It is also important to keep an eye on the account so that you can switch to a better deal if the rate drops.

There is no minimum age at which an account can be opened but many require an adult to run them until the child reaches age 11. Most can be maintained until the age of 18.

Free gifts are available with most accounts. These range from teddy bears and birthday cards for younger children through to vouchers and CD for teenagers. These are designed to attract new savers and may help your child to develop more interest in saving money. But look beyond the free gifts to make sure your child's money is working hard.

Most deposit accounts can be opened with just £1 and are instant access, allowing withdrawals at any time. Notice accounts require advanced warning of withdrawals or a limited number per year - usually in return for a slightly better rate of interest.

Bonds tend to offer a higher or fixed rate of interest because they tie money up for required period, usually a minimum of three years. Some run until your child reaches a certain age - 7 or even 18 years old.

Making payments and withdrawals, as well as watching money grow in an account can help your child learn about savings goals from an early age. Visit FinanceLink, which is a comprehensive personal finance directory, to find suitable child savings accounts.