Young savers being given a head start

Yorkshire Building Society has welcomed signs that parents are getting their children into the savings habit.

Accounts in the name of savers aged 17 or younger made up almost one third (32%) of all new customers opening the Yorkshire's Regular Saver last year, and of these the highest proportion (29%) were registered for under-12s.
 
"We find that Regular Saver is most popular among young savers, particularly with the under-12s," said Yorkshire Building Society product manager Mike Helliwell.
 
"Regular Saver's popularity among youngsters might be explained by their parents or grandparents opening the accounts on their behalf, which shows they realise the importance of getting children into sound financial habits early in life.
 
"We aim to offer our members long-term good value and many customers choose to have a relationship for decades, so we are proud if they have decided to continue this with a new generation of savers.
 
"This type of account also is popular with customers over 45, with almost half (49%) of new customers in this age bracket, but that's less unexpected."
 
For people aged 17 or younger, a Regular Saver account would need to be opened on their behalf by an adult as trustee.
 
Yorkshire Building Society's Regular Saver Issue 2 currently pays 3% gross, including a conditional bonus of 2%, on balances where the account is credited with between £10 and £250 each month and no more than one withdrawal is made per account year. The interest rate is variable and interest is paid annually.