High street lender Leeds & Holbeck has launched a new cash child trust fund (CTF).
The move follows the launch of the building society's stakeholder CTF earlier this year.
Child trust funds are a government initiative designed to extend saving to all levels of society.
"It is still early days but most parents appear to favour the cash CTF," said Karen Wint, head of marketing at Leeds & Holbeck. "It is important, therefore, that we are able to offer both to our customers and ensure that our product offers a way for parents to save for their children's future.
"Our new cash CTF compliments our stakeholder offering and provides a return of up to six per cent in the first two years, with a guarantee to be no less than one per cent below Bank of England base rate for the remaining term."
Leeds & Holbeck is planning to rebrand itself as Leeds Building Society in September.
To read more about savings accounts, click here.
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