A kids guide to savings accounts.

Savings accounts are a great way to help you save up for a rainy day, for books, computer games and music, or for more expensive items that you may have your eye on – like a new computer or mountain bike.

Saving up your wages, pocket money and money that you might receive for Christmas or birthdays is a good habit to get in to. If you have cash stashed in your bedroom, it can be more tempting to spend it, but having your money stored safely in a savings account is the best way to build up your finances.

You can choose from a range of savings accounts specially designed for children from a range of banks. These accounts should all pay you interest on your savings, so however much you invest, your bank will reward you with a percentage of this amount added to your existing savings.

The interest rate that you will be paid will vary from bank to bank and will depend on the type of account you choose to invest in. Some banks and building societies will pay your interest into your account each year, while some will pay it to you each month.

One savings account option is an easy access account, which allows you to access your money whenever you want it. These accounts often come with a debit card allowing you to draw money out of ATM machines.

Another option is to put your money into a notice account. This means that when you want to take money out of your account, you have to give your bank or building society notice beforehand – anywhere from 1 month to 3 month’s notice depending on the bank. These types of accounts will often pay you a higher rate of interest.

Most banks will allow you to open an account in your own name from the age of 7. If you are looking for an account that comes with a debit card, allowing you to pay for items with your card, and to withdraw money from cash machines, you will have to wait until you’re a little older.

The Santander bank offers a child savings account that comes with a debit card, and this is available to children aged 11 to 15. You can manage your account by post and in person and some banks will let you manage your account over the telephone and online too. Have a look at Santander’s website to find out more about savings accounts.