HSBC launches new account range for under 18s

HSBC has launched a new account range, called ‘MyMoney’, for 7-17 year olds. The accounts are designed to help children get into the habit of managing their pocket money and understand how their spending can have an effect on their savings.

From the age of 7 young savers can get a ‘MySavings’ account, it has a great rate of interest, currently 5.25 per cent AER, and a wide range of features including HSBC’s distinctive red ‘safe’ money-box.

On the child’s 11th birthday, HSBC will also open a linked current account - called ‘MyAccount’ - to help them get into the habit of keeping their spending money separate from their savings and learn how to budget.

Lucy Payne, youth customer manager at HSBC, said: “Recent government research has shown that 82 per cent of parents fear their children will struggle with debt later in life. Learning to budget at an early age is a great foundation to help children avoid the pitfalls of debt as they grow older.”

“The ‘MyMoney’ accounts are designed to help children and teenagers better understand that saving is a positive way to approach money. By keeping their savings and their spending separate they can learn to budget and manage their finances responsibly now.”

‘MySavings’ and ‘MyAccount’ both come with a great range of features to aid the financial learning process among children, these are as follows:

7-10 years - MySavings:

a great rate of interest, currently 5.25 per cent AER, paid monthly;
a free ‘safe’ money box for under 11s;
a minimum deposit of just £1;
friends and family can pay pocket money directly to the account;
paying in and cash withdrawal book;
parents/guardian signature required for withdrawals of £50 or more; and
quarterly statements to help children keep tabs on their money.

11-17 years - MySavings and MyAccount - with the following additional features:

exclusive website with special discounts and offers along with hints and tips on how children can manage their money;
access to a Personal Internet Banking account , so children can easily move money between their saving and spending accounts;
regular detailed statements, which can also be viewed online via their Personal Internet Banking account.
cash card & PIN for cash withdrawals, balance checks, mobile phone top-ups and ordering statements at any of HSBC’s 3,500 free ATMs; and
the facility to make deposits using HSBC’s ‘Express Banking’ machines.

When the child reaches their 11th and 13th birthdays, HSBC will contact the parents directly with an update on the account and what additional services are available to their child.

Ms Payne continues: “HSBC recognises the crucial role played by parents in helping children manage their finances. It is for this reason that we make a commitment to ensure parents are kept informed on the account as their child grows older.

Bank to the future with HSBC’s new account range for under 18s

“At the age of 13 the child will be offered a Solo debit card, unless HSBC is asked not to do so by their parents. By contacting the parents at this stage we ensure they have complete control on how the account progresses.”