Open a children’s savings account to help with their financial education
Being good with money just got compulsory - at least for kids.
As of August, financial education became part of the National Curriculum in maths and citizenship lessons.
The idea is that all children will become experts at budgeting, saving and borrowing down to the last decimal point.
That’s the theory. But how about giving the youngsters in your life some help with the practical side of finances?
One of the best ways to make kids wiser with cash is to open a children’s savings account for them, according to the government’s Money Advice Service.
We have just such an account at The Nottingham. It is called the Robin Hood Young Saver Issue 2 account - and we think it’s rather good.
Want to know more?
Let Jon Cartlidge, our Senior Product Manager for Savings and Mortgages, tell you all about it.
Q. What does a child get from a Robin Hood Young Saver account?
JON: They get a chance to start saving and learning about the value of money with one of the most competitive children’s savings accounts on the market.
Q. That’s good. What else?
JON: Every Robin Hood Young Saver receives a free Robin Hood money box, a branded hessian bag, a Robin Hood story book which tells them why it’s important to save, as well as a wall chart and stickers so they can show how much they are saving. The more they save the more money box characters they can collect: Friar Tuck, the Sheriff of Nottingham and Maid Marion.
Q. That’s a lot of free stuff. How much do you need to open an account?
JON: You can open a Robin Hood Saver account for as little as £1. After that, you are allowed to pay in up to £100 per month.
Q. What interest will the child earn on their money?
JON: They will get 3%*, which is very competitive for a children’s savings account.
Q. Who can open an account on behalf of a child?
JON: Parents, guardians, carers, nans, granddads, uncles, aunties, god parents - anyone who has the child’s best interests at heart. The one proviso is that you must have permission from the child’s parent or carer.
Q. How do I open an account?
JON: You need to book an appointment with one of our branches and bring the child’s birth certificate and your own ID into a local branch. It’s as easy as that.
Q. Who can access the account?
JON: The child is the “beneficial owner” of the account. When a deposit is made, that money belongs to them. The child has the right to make withdrawals from the age of seven. Before that, they will need the signature of the parent, guardian or trustee named on the account.
Q. Are there any penalties for taking money out of the account?
JON: No. Unlike Junior ISAs which can’t be touched without penalties until a child turns 18, these accounts allow youngsters access to their money as and when they want it.
Find your nearest branch to open your account.
*The Robin Hood Young Saver Issue 4 account provides 3% gross p.a/AER+ and is fixed** until 31 January 2016. It is a limited edition, regular savings account, that is only available in our branches. You can save up to £100 every month and it is an instant access account.