Children’s savings accounts can be a good way to kick-start your kids’ savings habits as you can open a savings account in their names.
You will need to apply to have the interest paid to the account tax-free. You can do this by filling out for R85 which is available from HMRC. If you don’t do this then interest with be taxed at the normal savings rate of 20%.
Children’s savings accounts come in a similar variety of accounts as adult savings accounts. You can get a children’s regular savings account, a child fixed rate savings account as well as children’s instant access savings accounts.
The type of account that is best for your child will depend on how old he or she is as most accounts carry age restrictions. Start a children’s savings account today and get your child saving early.
