Parents are being urged to put their child's cash Christmas presents into a high interest savings account.
Moneysupermarket.co.uk says that by placing surplus Christmas money into one of the many children's cash-based savings accounts on the market parents could give their offspring a financial head-start in later life.
In fact, the website said that by investing a regular sum of £50 a month into an account paying around 5.22 per cent AER, the savings could earn £18,129.50 after 18 years.
If £200 top ups are added at Christmas time, then the account could reach over £24,000.
Stuart Glendinning, director of savings at moneysupermarket.com said: "While perhaps not as enticing as the latest toy, setting aside Christmas monies to start up a savings child savings account will enable parents to give their child a truly valuable start for the future.
"With an array of children’s accounts on the market with rates as high as ten per cent, putting even small additional amounts away boosts interest earned, over a period of time, especially considering the interest can be tax free."
Other savings options for parents include equity investments and bonds.
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