Bradford & Bingley has announced details of a new bank account targeted at children that offers an interest rate of 4.5 per cent per annum.
The lender is offering the rates on condition that children make less than three withdrawals per year, with a minimum starting account of £10.
Entitled FirstSave, the account is being aimed at the under 12s, and comes complete with a free Penguin book plus one a year later if they keep within the limits prescribed.
Bradford & Bingley's Steve Potter, head of savings, said: "We have designed both these products to help encourage children and young people to start to save and understand the value of money from an early age.
"We think the competitive rate plus an attractive bonus will provide youngsters with the incentive to take out the accounts and save for their future."
There is also a secondary account, SmartSave, which is designed for savers aged between 13 and 25.To read more about banking, click here.
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