Savings account providers are neglecting to offer worthwhile rates on their children's products, an analysis of the market has revealed.
Moneynet.co.uk found that the average interest rate being offered on children's instant access accounts with £1,000 is currently at 0.98 per cent, while one in ten pay lower than the Bank of England base rate at 0.5 per cent.
Andrew Hagger, spokesperson for the website, said that it is easy to see "why some parents just don't bother" encouraging their offspring to make savings into a bank account, which could have a negative effect on them in the future.
He added: "Unfortunately there are only half a dozen providers currently offering regular savings accounts for children, an area that is crying out for more innovation and competition from the rest of the banks and building societies ."
Tesco Finance research recently revealed that 51 per cent of children believe they will have at least £1 million in their savings accounts at some point in their lives.
Children losing out with savings rates
Financial Services > Saving Accounts > News
Children losing out with savings rates
Thu, 12 Nov 2009
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