Halifax Young Saver, which is aimed at children aged 0-15, has paid 2% interest since its 2011 launch but, after a review of rates, Halifax has increased this to 3%.

Richard Fearon, head of Halifax Savings, said: “By offering competitive rates when children are young to reward positive savings habits, we can help them develop a greater understanding of the benefits of regular saving as they grow up.”

Young Saver customers who opened the account prior to 23rd April 2013 will receive 3% on the full balance of their Young Saver account. For new customers who opened the account after this date, they will receive 3% on balances up to £20,000, and 0.5% on anything above this amount.