A new savings account aimed at children is now available, it has been announced.
The Child Regular Saver is being offered by The Nottingham and features an interest rate of 7.5 per cent for young people aged 16 or under.
An initial deposit of £10 can be used to open an account, into which a maximum of £100 can be paid every month.
Clare Roberts of the building society explained that setting up an account can help encourage relations and friends to save for young people.
“With Christmas just around the corner, this is one present that has the potential to be treasured for a long time to come,” she noted.
Establishing such an account may help to provide young people with some financial security once they reach the age of 17, possibly reducing the risk of them falling into financial difficulty and requiring debt advice at a young age.
Engage Mutual recently found that 31 per cent of parents are still providing offspring aged 25 and over with financial assistance to help them pay off student debts or buy a home.
By Tom Musk