Mar 13 2009
People looking for the best child savings may want to consider fixed-rate accounts instead of instant access accounts, according to a financial advisor.
Moneyfacts cites the Bank of England's latest figures, which show a record low for instant access accounts – with some in February paying as little as 0.17 per cent.
Spokesperson for Moneyfacts Michelle Slade advises savers to look at the possibilities of fixed rate bonds, which "still offer some of the highest rates on the market" and have the added advantage of being guaranteed by the bank.
Those investing for children should also be aware that some banks could start charging people for their savings accounts, according to Ms Slade.
"We can't write it off completely yet," she says, advising that with the push to offer competitive savings, many people switching their accounts should check the terms and conditions before committing themselves.
