Parents urged to help children compare savings accounts

Mozo

Tuesday 16 August 2011

Following a Public Defender investigation which revealed that youngsters get interest rates as low as 0.5 per cent with some savings accounts, an expert has called on parents and children to compare bank accounts.

Parents urged to select savings accounts for children carefully

Mark Degotardi, spokesperson for Abacus, recommended looking beyond the advertised headline rates, reports the Herald Sun.

He told the publication that those with savings accounts should try to ascertain what their savings pattern will be.

"You might be better off to choose one that has a lower headline rate but pays interest regardless of whether you use it or not," he stated.

Bankwest was found to offer the highest rate on children's savings accounts, but the ten per cent return offered comes with strict stipulations about how much must be deposited each month.

Last month, managing editor of YourMoney Magazine Jackie Pearson said parents should check the fine print when helping their youngsters select a savings account.

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