Nationwide launches new children’s savings account that pays 3.5% pa interest
Nationwide Building Society are shaking up the children’s savings market with a new “future saver” account that will pay 3.5% AER.
Designed to allow parents to save for their children’s future this new account sets a precedent for interest paying account for youngsters.
The caveat is that parents will need to hold their main current account with Nationwide (FlexDirect, FlexAccount or FlexPlus). Parents who do not hold their account with Nationwide will still receive a competitive rate of interest of 2.50% AER.
The account has a maximum deposit limit of £5,000 pa, with one withdrawal a year allowed. More withdrawals can be made but this will impact on the interest you receive.
The savings account is written in the name of the child but parents have full access to the money if needed.