Loyalty pays with Abbey's new 8 per cent youth account

From Tuesday 1 July, children aged between 11 and 18 who have a parent that has a current account with Abbey can apply for an Abbey youth account paying 8 per cent interest on balances up to 500 GBP.

It's a case of loyalty pays, as most parents tend to set up their kids bank account anyway. 67 per cent of kids surveyed by Abbey Banking said their mum or dad set up their account and 14 per cent said that they'd done it together with their parents.

The only condition is that if they are aged 16 or over, that they credit at least 50 GBP a month into the account. Those aged 11-15 simply have to make one credit per month of any value.

Steve Shore, Director of Abbey Banking, commented: "Most kids let their parents set up a bank account for them anyway so this is a way of rewarding family loyalty. It's one of the highest rates in the market for kids and we have a great switcher account for adults too, which also pays 8 per cent on balances up to 2,500 GBP."

Abbey Banking's research also shows that kids are becoming more financially savvy. Only 10 per cent of 11-15 year olds said they'd be swayed by gimmicks such as free gifts or special offers when choosing a bank account, while almost a third (30 per cent) would choose the best interest rate.

Steve Shore continued: "Kids say they like high interest rates and 8 per cent is one of the highest rates out there. It's encouraging that so many young people seem to be so financially savvy."