P566ORACLE 566 Mon17 Feb C4 9714:54
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THE A-Z OF
INVESTMENTS
K is for Kid's accounts
Chances are that if youWre comparing
savings accounts with a view to opening
one for, say, a grandchild you'll be
more impressed with the interest they
pay than with free gifts. The child may
have different ideas, though!
In 1983 a Gallup survey put the spend-
ing power of children aged between 5
and 16 at over £780m. It hasn't taken
the banks and building societies long
to discover that many under-18s are
savers as well as spenders.
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Your Money ...560 Feature ...567
CADBURY'S CHOCOLATE RECIPE 184 (ITV)
P566ORACLE 566 Mon17 Feb C4 1709:07
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THE A-Z OF
INVESTMENTS
Many banks and building societies have
accounts for kids. Recently the Nation-
wide building society launched a new
Cashbooster account for the under-16s
with a minimum of £1 to save. Interest
is 7% net of basic rate tax and small
bonuses are paid for keeping money in
for at least a month ─ an extra £2 if
the balance gets to £50, for example.
Freebies include a wallet and pen plus
the right to enter competitions in the
society's free 'Hi-Interest' magazine.
Britannia building society offers 8.5%
net on its Brighter Savers account ─
plus a piggy bank and the choice of a
purse, wallet, torch or document holder
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P566ORACLE 566 Mon17 Feb C4 1702:22
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THE A-Z OF
INVESTMENTS
Research (by the Britannia building
society) has shown that piggy banks are
the most popular freebie with kid's
accounts and the NatWest Piggy account
has a whole sty-full ─ at a price.
Start a child off with the minimum £3
and just £1 is credited to the account.
The rest pays for a plastic wallet, a
pack of pencils and the first pig. Pigs
number 2, 3, 4 and 5 come (free) with
each £25 saved. Interest is 8% net.
The more sober Lloyds Black Horse Young
Savers account pays 8½% interest on the
£10 minimum needed to open the account.
There's also a free money box.
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Your money...560 Feature...567
P566ORACLE 566 Mon17 Feb C4 1710:17
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THE A-Z OF
INVESTMENTS
Midland's Griffin Savers kid's account
pays 2% over the usual deposit rate
(8½% net in fact) and will impress even
the most freebie-minded child ─ a home
bank file, Oxford dictionary, geometry
set, twice yearly magazine and a
birthday card.
Two more accounts send cards on the
child's birthday and print magazines:
the Bank of Scotland Supersaver account
which throws in a folder, pen, and a
plastic money box (interest 7.67% net)
and the TSB Jeans Scheme paying 7¼%.
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Your money...560 Feature...567
P566ORACLE 566 Mon17 Feb C4 1713:41
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THE A-Z OF
INVESTMENTS
For children who are budding financiers
why not open a Bradford and Bingley
Money Manager account? At 21, the top
age limit is higher than with most kids
accounts and free gifts include a file
on 'grown-up' subjects like insurance.
Grandparents with an educational intent
can enrol children in Peckham building
society's Jumbo account (10.4%), which
offers a year's subscription to the
World Wildlife Fund or the Young
Ornithologist's Clua. If a child has a
favourite cartoon character make sure
you pick the right account. Snoopy at
the Bristol & West, Paddington with the
Cheltenham & Gloucester, for example.
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Your Money ...560 Feature ...567
P566ORACLE 566 Mon17 Feb C4 1711:11
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THE A-Z OF
INVESTMENTS
The best kid's investments are not to
be found where the freebies are, though
since most children don't earn enough
to pay tax. Banks and building
societies deduct basic rate tax before
paying interest and the child can't
reclaim it.
A National Savings account makes a more
tax-efficient (albeit piggy-less)
investment for a child as the interest
is paid gross. You can open the account
on the child's birth, and he or she can
withdraw the cash personally at 7 years
Next week: L is for Local authorities
more fgllows >
Your Money ...560 Feature ...567