Get 4.5 pc on top account for children

HALIFAX Bank has revamped its popular kids’ account, for adults wanting to save for their children each month.

With a fixed rate of 4.5 pc, the Halifax Kids’ Monthly Saver is a top payer, and is now available online as well as through its branches.

You open the account in trust for a child aged 15 or under, and save between £10 and £100 a month.

If you are a grandparent, you need the parent or legal guardian’s permission to open the account.

A £100-a-month saving turns into £1,227 after a year, including interest. At this point, the money moves into a Halifax Kids’ Saver account, which pays a variable 2 pc on balances up to £5,000. Over this level you earn only 0.2 pc.

Once the money is transferred, you can carry on saving into the Kids’ Monthly Saver for another year. You can’t make any withdrawals from this, but you can take money out of the easy-access Kids’ Saver whenever you wish.

Once the child reaches 16, the Kids’ Saver becomes an Everyday Saver, where the rate is just 0.2 pc, but remains in trust for the child.

Nationwide pays 2.5 pc on its Smart Limited Access children’s account, but you are limited to one withdrawal a year. Skipton BS Children’s Saver and Virgin Money Young Saver are both easy-access accounts for children paying 2 pc.