HSBC has launched a new range of accounts for those aged between seven and 17, designed to help children get into the habit of managing their pocket money and understand how their spending can have an effect on their savings.
From the age of seven, young savers can open a MySavings account, which offers a competitive rate of interest, currently 5.25% AER, and a wide range of other features, including HSBC’s distinctive red ‘safe’ money box.
On the child’s 11th birthday, HSBC will open a linked current account called MyAccount, in a bid to help them get into the habit of keeping their spending money separate from their savings and learn how to budget.
Lucy Payne, youth customer manager at HSBC, said: Recent government research has shown that 82% of parents fear their children will struggle with debt later in life. Learning to budget at an early age is a great foundation to help children avoid the pitfalls of debt as they grow older.
The MyMoney accounts are designed to help children and teenagers better understand that saving is a positive way to approach money. By keeping their savings and their spending separate they can learn to budget and manage their finances responsibly now.
Other features of the accounts include detailed statements, a minimum deposit of GBP1 and a paying and cash withdrawal book.