The Newcastle launches new children’s savings account

A new children’s saver account has been launched by Newcastle Building Society, called the ‘Newcastle Big Little Saver’.

It pays a competitive variable rate of 2.98% Gross (3.00% AER), which includes a 1% bonus for regular savers who make at least one deposit and no withdrawals in each month (rate without bonus is 1.98% Gross/AER).

The account is ideal for parents, grandparents and guardians who want to build a nest egg for their child's future, or is great for kids to learn how to manage their own money. The account can be opened with as little as £1 and the maximum initial and monthly investment is £250.

It also permits easy access withdrawals at any time as the Society wants to make it as accessible to as many families as possible.

It has also created a savings family called the ‘Castles’ and hopes the young cartoon characters, Bob and Penny Castle, will engage with children and inspire them to save. The specially designed website biglittlesaver.co.uk provides young savers with the chance to get to know the characters too.

Steve Urwin, Sales and Marketing Executive, at NBS, said: “It’s important to get kids interested in saving their own pocket money. A children’s saving account is an ideal way to do this as it can educate them about the process, while encouraging them to save regularly for that ‘something special’. We also developed the Castle family as it is a creative way of helping to get our children to become interested in saving, but in a fun way.

“We feel the end of the Child Trust fund has left a black hole in the saving market for parents. But the introduction of savings products such as ours, as well as the hotly anticipated Government Junior ISAs, are all good moves towards educating members about the importance of saving for your children’s’ futures.”

Once an account is opened savers receive a height and savings chart to encourage children to watch their savings grow as they do, fun stickers, bookmarks, special passbook covers and a special edition book about the saving family, The Castles. Products must be collected from any one of the Society’s 30 UK-based branches.