Kids savings accounts have fees and traps

Consumer group CHOICE said parents who are looking for an account for their child should apply the same criteria they would for their own savings account, and be prepared to move their child's money if the account isn't delivering.

Spokeswoman Ingrid Just said some banks automatically transferred money into a new account once the child reached the age limit of the account.

“If that happens, look at the conditions and interest rate on the new account and make sure it is fee-free,” Ms Just said. “Kids can learn valuable savings lessons by having a bank account in which they play an active role.”

Source: The Daily Telegraph