CHESTER, England, October 29, 2012 /PRNewswire/ --
- Only 72,000 Junior ISAs opened since launch
- Parents need to consider their children's savings options carefully
- Back to basics: rise in incentives to urge parents to save for their children
With only 72,000 Junior ISAs (JISA) being opened since their launch a year ago, and many deeming the initiative unsuccessful, parents shouldn't forget the importance of savings for a child's future and they should consider all of the options available, according to MoneySupermarket.
Analysis by the UK's number one comparison site found a number of children's savings accounts offer competitive rates, while also offering incentives when opening an account. Chorley Building Society, for example, offers savers a rate of 4.00 per cent AER as well as a free piggy bank gift when you open the account. Similarly, Newcastle Building Society offers 3.02 per cent APR on its Big Little Saver account, and savers receive a free goody bag when they open an account.
Whilst the give-aways are a great added extra, when looking at JISAs, similar rates can be found; Nationwide offers 3.25 per cent on its JISA and Skipton Building Society offers 3.02 per cent. Halifax is currently offering a rate of 6.00 per cent but this is only available to existing customers with an adult ISA account.
Kevin Mountford, head of banking, at MoneySupermarket.com, said: "Junior ISAs were launched 12 months ago but are only available to children who didn't qualify for the previous Child Trust Fund (CTF) scheme. Therefore it is no surprise that only a small number of accounts have been opened since launch, and the number of providers who have launched JISAs is small. However, the principle of JISAs is a good one; encouraging parents and grandparents to save on behalf of their children or grandchildren. With the increased cost of living and rises in university tuition fees, the earlier parents or grandparents begin saving, the better start they can give to their children. Unfortunately however, we are not a generation of savers, and this needs to change. Rather than giving children presents for a special occasion, it may be more beneficial in the long term to put some money into a savings account.
"Junior ISAs are just one of the savings options available. The introduction of CTFs changed the landscape of children's savings somewhat, but we are beginning to see a culture shift back to old school savings products from banks and building societies offering gifts and memorabilia as an incentive. This can only be seen as a good thing - if anything can encourage children to start saving from an early age, then this may be more valuable than an extra per cent interest rate. NatWest, for example, recently announced the re-launch of the NatWest pigs, which will be offered to children when their parents open a children's savings account.Similarly, there are rucksacks and goody bags on offer from other providers in an attempt to incentivise savers.
"Saving for the future is an essential safeguard parents should be taking for their children. It is never too late to start, and by shopping around for the best rate and incentives using MoneySupermarket.com, parents can rest assured they will find the best option to help save for their children's future."
MoneySupermarket is running a competition to encourage parent bloggers to pass on financial advice to the next generation of savers. The SuperKids Savers competition is running until 16 November, 2012 at:
Notes to Editors
Junior ISAs Based on GBP3,600 Provider Deposit Notice/Term AER Halifax* Junior ISA GBP1 Instant 6.00% Nationwide BS Smart Junior ISA GBP1 Instant 3.25% Skipton BS Junior ISA GBP1 Instant 3.02% Lloyds TSB Junior Cash ISA GBP1 Instant 3.00% Scottish BS Junior ISA GBP1 Instant 2.60%
6% interest available if the adult registered contact holds a Halifax Cash ISA
with a minimum balance of GBP1. A rate of 3% will apply to non Halifax ISA
Sourced by http://www.moneysupermarket.com 24.10.2012
Children's Savings Accounts Top 20 - Based on GBP1,000 Provider Deposit Notice/Term AER Incentive Chorley BS Childrens Foxley Regular Saver GBP1 Instant 4.00% Piggy bank. Newcastle BS Big Little Saver GBP1 Instant 3.02% Goody bag. Virgin Money Little Rock Instant Access Issue 2 GBP1 Instant 3.00% N/A HSBC Premier MySavings GBP1 Instant 3.00% N/A Mansfield BS Young Regular Saver 1st Issue GBP1 Instant 3.00% Piggy bank. Lloyds TSB Young Saver GBP1 Instant 3.00% Stanley money box. Buckinhamshire BS Junior Saver 100 Day Notice GBP1,000 100 Days 3.00% Free rucksack.
Sourced by http://www.moneysupermarket.com 22.10.2012
MoneySupermarket.com compares (at 30th August 2012)
- 107 car insurance providers and 82 home insurance providers
- 12 broadband providers and 18 energy providers
- 32 unsecured loan and 6 secured loan providers
- 62 mortgage lenders and 28 credit card providers
- 66 savings providers and 37 current account providers.
- Over 1,200,000 mobile phone deals
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