Parents who have young children could benefit from the introduction of a new savings account from Scarborough Building Society.
The Family Saver account aims to encourage more people to save for the future and to help subsidise the rising costs of raising a child.
With an interest rate of 4.80 per cent from a balance of £1, the Family Saver has been introduced in order to provide an incentive to put money aside and “develop the savings habit”.
In addition, it has no restrictions regarding withdrawals or deposits and offers a savings book so families can see the progress they are making.
Tony Burdin, head of group marketing at Scarborough, said that while many accounts cater for specific demographic groups, its new savings account is aimed at those with potentially higher costs and “the contemporary spiral of debt”.
“We hope that, with its flexible features, it will convince families that they don’t have to be wealthy to put something by for the future and that even a few pounds can make a big difference,” he added.
The cost of raising a child was recently revealed to have increased by 28 per cent in the past three years, according to Liverpool Victoria. Research from the society discovered that parents could spend a total of £180,137 on their offspring up to the age of 21.
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