Cash point

Halifax has launched two new childrens’ savings accounts that can be opened in branches and online. The Kids’ Monthly Saver pays 4.5% and lets parents or relatives put away from £10 to £100 a month for a year. After 12 months, the money is transferred into a Kids’ Saver paying 2% on balances up to £5,000 (0.2% on anything above that).

The 4.5% monthly saver is the best you can get on a childrens’ regular saver, but the 2% can be beaten. HSBC’s mysavings pays 2.75% and Nationwide Building Society’s Smart (limited access) account pays 2.5%. There are also Junior ISAs offering more, from Coventry Building Society at 3.5% and Nationwide at 3.25%. Andrew Hagger, from personal finance website Moneycoms.co.uk, said: “It’s a shame Halifax’s Monthly Saver only lasts a year – but at least it may help kids and parents get into the habit of putting cash aside regularly.”