Leeds Building Society launches new savings account for children

Leeds Building Society has launched a new savings account for children paying an excellent rate of 5.20% gross p.a./AER on a minimum operating balance of only £10, with full instant access to the funds, at any time, without notice or penalty.

Karen Wint, Head of Marketing & PR, said, "We have launched a new children’s savings account to encourage young people to start saving, develop an understanding of how accounts work and get a fantastic rate of return.

"There is no shortage of data showing a high level of financial illiteracy among young people. A survey by City regulator the Financial Services Authority revealed that 15 per cent of 18 to 24 year olds think an individual savings account (ISA) is an iPod accessory.

"In addition last month Ed Balls, the Secretary of State for Children, Schools and Families, announced details of a revamped approach to personal finance education in schools. From September 2008, under the plans, pupils will be taught essential financial life skills via a new functional maths GCSE.

"Our research showed that around 85% of young savers originally opened their account below the age of 12. As a result, we have designed two different concepts to appeal to these children and those up to 17.

"Dinosaurs are a perennial favourite with children and our account for those aged up to 11 years old is called the Dinosaver. There are three characters that feature on a wall chart: Tricera-saver, Saver-dactil and Dinosaver-rex and help to explain to children the different reasons to save. The wall chart and coloured pencils are free when the account is opened. As an added incentive, Dinosavers will also receive a free Tricera-saver cuddly toy once their balance hits £200."

Leeds Building Society has also launched a new account for older children, aged 12-17 years, called ‘The Vault.’ This pays the same great rate of 5.20% gross p.a./AER on a minimum investment of only £10 and also allows full instant access to the funds, at any time, without notice or penalty.