You are here: Home - Saving & Banking - News -

Christmas cash windfall for kids

0
Written by:
10/12/2007

British children are due to receive a cash windfall of some £2.4bn this Christmas as parents, grandparents, aunts and uncles turn to pounds and pennies for presents this year.
MoneyExpert.com research shows that 48% of all adults will give cash gifts to kids this festive period, handing over £94.82 on average.

The independent financial comparison website says that most adults are likely to give children between £20 and £50 and it is urging children – or their parents – receiving the windfalls to think carefully about where they save their cash.

MoneyExpert.com analysis shows the average interest rate paid by kids’ savings accounts is an impressive 4.9% – but there are plenty of poor deals out there.

More than 130 accounts are on the market for children from banks and building societies but MoneyExpert.com figures show 30 pay less than the average with some as low as 1.5% for sums of £1/£5/£10.

Sean Gardner, chief executive of MoneyExpert.com, said: “Giving kids some cash for Christmas is a good way to put a smile on their face – and possibly help them to get the savings habit.

“I don’t want to spoil the fun but if your child has some cash lying around on top of their Christmas presents this year, it might be worth suggesting they start saving. It might not be what every kid wants but it’s certainly a good way to introduce the idea of thinking about money.”
 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Store card holders rack up billions in interest

The average store card APR is 10% higher than the average credit card, according to uSwitch, and 16 million users...

Close