Children’s Bank Accounts

All parents want their children to have the best start in life and two ways of doing this are to teach them about saving with their own savings account and to invest for them. Most banks on high street offer children’s accounts which is typically a regular account with a basic interest rate as well. Free piggy banks can be an incentive as a way to get kids interested in saving and develop prudence at a young age.
Although you can open an account just for them, you can also use your adult account which will offer a better interest rate. At the Children’s Bonus Bonds you can open a savings account for your child that is tax free. With this account you can invest from $25 and $3,000 a year for a limit of five years with interest guaranteed.
If your child receives money as a gift and it goes into their own account, ask that the person sending it attach a letter telling it is a gift. This way you have proof if the tax office asks for it. You can find more details on children’s taxes online.