Principality launches children's saving account

A new Principality Savings Account has been launched, it has been revealed.

Details of a new saving account aimed specifically at children have been unveiled.

The Dylan's Children's Regular Saver by Principality Savings offers a five per cent gross rate of return guaranteed for a year, although children will need to complete an R85 form in order to benefit from tax-free savings.

However, money must be deposited into the Principality Savings Account every month, otherwise the product will automatically revert to the building society's standard saving account for children.

James Wright, marketing director of Principality Building Society, states: "It's the ideal account for parents and grandparents alike to teach their children and grandchildren how to save their pennies and a great way to educate them on the benefits and rewards of saving."

The saving account can be opened from a minimum balance of £10 and anywhere between this amount and £150 can be placed in it each month.

Parents looking to compare accounts in order to make the most of their own savings could be interested in advice from lovemoney.com writer Szu Ping Chan that such regular saver products are "the unsung hero" of the savings account sector.

Written by Bret Clement