The Co-operative Bank has upped the interest rate it pays on savings accounts for children for the first $4,000 to 5%, which is well ahead of advertised rates offered on childrens accounts by other banks, building societies and credit unions.
The bank has the "Dollars and Sense" account for children under 13 and the "Dosh" account for 13 to 17 year olds.
"For the first $4,000 of savings, interest rates for young people are now nearly twice what they were before," Co-operative Bank, formerly PSIS, says.
"Every dollar a child saves will receive an interest rate of 5% per annum up to $4,000, with 2.75% per annum for every $1 saved above $4,000. The previous interest rate was 2.75% per annum on the whole balance."
The 5% rate is for both kids accounts offered by Co-operative Bank.
The next best interest rate offered on a child's savings account is 3.25% by Heartland Bank.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.