Santander enters youngster accounts battle with 3pc charge
The new 123 Mini, available for eleven to 18 12 months olds, pays a market-leading charge of up to 3pc interest tax-free 
Photograph: Picture PARTNERS / ALAMY
Santander has launched a new children’s present account that pays up to 3pc on balances of up to £2,000.
The account is offered to any person aged in between 11 to 18, even though young children underneath 11 can have their parent or guardian open and deal with the account for them as a trustee, if they hold their own Santander existing account. The account can be handed more than to the child following they turn eleven by removing the believe in.
Santander’s current current accounts for 11 to 18 12 months olds, which offer you up to 3pc interest but for balances of up to £500 only, will be eliminated from sale. Current clients can proceed to use their account or upgrade to the new 123 Mini.
More: Santander 123 Mini
The 123 Mini pays tiered curiosity costs of 1pc on balances from £100, 2pc on balances from £200, and 3pc on amounts from £300 up to £2,000. There are no charges on the financial institution account.
Savers can place as considerably money into the existing account as they pick, but curiosity will only be paid up to £2,000. On this amount, under 19s will earn £60 a 12 months .
Santander’s well-known 123 Current Account for grownups provides up to 3pc curiosity on balances up to £20,000 and up to 3pc cashback on home expenses, for a charge of £2 a month.
How does this account examine to others?
Bank of Scotland , Lloyds and TSB provide eleven to 18 year olds curiosity of 2.5pc on balances up to £2,500. Any cash above this amount will earn interest of .10pc. On £2,500, underneath 19s will earn £62.50 a yr .
Halifax customers aged 11 to 18 are paid one.51pc on balances from £1. On £2,500, account-holders will earn £37.75 a 12 months .
Nationwide pays .75pc on balances above £1. On a balance of £2,500, account-holders would earn £18.75 a yr .
NatWest pays 1pc , even though parent company RBS pays .55pc on any amount held in either present account. On a stability of £2,500, youngsters aged 11 to 18 would earn £25 and £13.75 , respectively.
The Co-operative pays .25pc on balances from £1 to £5,000 for those aged seven to 18. Yearly money bonuses will be paid delivering the account has manintained an common of at least £50 in the previous 12 months. Children up to the age of twelve will obtain £2, even though 13 to 18 year olds will get £10 a yr. On a stability of £2,500, account-holders will earn £6.25 a yr .
Barclays pays .25pc on balances from £1 for children aged 11 to 15. On a balance of £2,500, beneath 16s will earn £6.25 a 12 months .
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