Children’s bond launched
According to a Government-sponsored report, the next generation of homebuyers will struggle to get even a toehold on the property ladder because houses will be worth 10 times average earnings in 20 years time.
Consequently, it is imperative that parents plan for their child’s financial future, whether it be in the form of a Trust Fund or a Saving Bond.
Bradford & Bingley has launched a Children’s savings bond which has a guaranteed fixed return and a rate of 6.4% which, according to the bank, is extremely competitive. Children up to the age of 16 are eligible for the saving bond and are also entitled to gross interest on the bond.
The minimum opening balance for the bond is £100, with the maximum balance at £25,000. A spokesperson for Bradford & Bingley commented that their Kid’s Saving Bond offers parents an excellent way of investing in their children’s future while achieving great returns.
The bank added that parents can be assured that their children’s savings have the added security of guaranteed returns, as well as offering exceptional savings rates.