bring down the interest rate paid on its Kids’ Saver account this week. According to the firm’s website, returns to these account holders will be slashed to 1 per cent, from 1.45 per cent on savings up to £5,000. The rate for balances above that will be 0.01 per cent. According to Halifax, the change, which has already come into effect for new customers, were made following regular reviews of its products. For existing account holders, the rate cut will be effective from 25 January 2022.
Meanwhile, Norwich-based financial information company Moneyfacts, although Halifax’ Kids’ Saver account was once a best-buy, better rates on instant access savings for children are being offered by other high street banks. However, most of them require a parent or guardian to be an existing customer of the bank. For instance, Santander’s 123 Mini Account offers a rate of up to 3 per cent, for a current account holder who may hold it in trust for the child. Meanwhile, a rate of 2.5 per cent is paid on HSBC’s Children’s Account, although it is limited to children and grandchildren of the bank’s Premier Account customers.
Meanwhile, Halifax insists that although the rate on its Kids’ Saver account has been slashed, customers can enjoy higher rates on some of its other products. “We continue to offer a competitive range of accounts for younger savers, including our Halifax Kids’ Monthly Saver at 2.5%, and make it easy for customers to check their rate on their account or move their money if there is a different account that is better for them,” a spokesperson for the company said.
