Do you have a savings account for your child?

[jennifersofia]

I mean one that the child keeps their own savings in, rather than money that you are saving up on the child's behalf.
I would like the dc to have a savings account, preferably with their own book, so they can learn more about saving, and watch their money grow, etc.
Are there any banks that are particularly better/more child friendly than others? Any particular features that would be good to look out for?

I opened up building society accounts with the Abbey National (now Santander) when both the childen were born, with me as a signatory until they reached the age where they could do their own signatures (about 8 years old I think). Both the children really do love watching their money grow AND for taking it out to make a purchase that I say I can't afford - e.g. XBox 360 at that particular time!

I don't know if they still do it for the younger ones, but some building societies used to send out "comics" and newsletters aimed at younger children.

Building societies tend to have better rates for young people than banks. My son has an account with the Nationwide. Features to look out for... make it clear to whoever you open the account with that the child is a non tax-payer. Then any interest they get is not taxed at source.

And remember to keep track of where the deposits are coming from. Gifts from parents do not count as the child's own money for tax purposes - it is taxed as yours. The money has to come from grandparents/friends/other relatives etc to qualify as tax free. Keep copies of cheques etc.

janinlondon... It's only if gifts from parents mean that the interest on the account goes over £100/year (from each parent) that it attracts the attention of the HMRC See here £100 interest, at today's pathetic rates, means they'd have to have getting on for £10000 on deposit... double if the gifts are from two parents.

Cash gifts can't be traced, of course!