Moneyfacts has given a cautious welcome to the newly launched savings account for children from Halifax.
The new Halifax Regular Savings account for children pays ten per cent interest, thought to be the first time in over ten years that a savings interest rate in double figures has been offered by any bank or building society.
Moneyfacts stresses that there are some restrictions on the new account that parents should be aware of, including the fact that the rate is only available for one year and money cannot be withdrawn without losing the ten per cent rate.
Rachel Thrussell, head of Savings at Moneyfacts.co.uk explained: "Whilst the account is ideal for someone looking to build up a nest egg for their children, if you have a lump sum of £1200 to invest for the full 12 months, you would earn virtually the same amount of interest (£64.20) if you invested it with the Saffron Walden BS ladybird account which pays 5.35 per cent and is currently top of the Moneyfacts.co.uk best buy chart for children's savings."
Moneyfacts estimates that, if savers invest the maximum £100 per month, they will receive around £65 in interest at the end of the year.To read more about savings and investments, click here.
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