I've recently become a grandmother and I want to start up a little savings account for my grandson. I wouldn't be putting in a lot each week, but which bank would you recommend doing this in?
It's nice to hear that you'll be putting away a little money away every week for your grandson, and all banks have "regular saver" accounts that are designed to help you do just that.
Like anything else, there are good accounts and bad ones, so if you're planning to put money away regularly over a long period of time it's important to choose a good one.
When choosing a regular saver account you should look at the interest rate and the amount the bank will pay that interest rate up to. Some banks offer what may look like a good interest rate, but only up to a paltry limit. Once you reach it, they'll pay you practically nothing. Another trick is to pay the advertised interest rate for just one year and then lock your money down in a term account. Sadly this kind of thing is quite common.
For this reason I like the Ulster Bank Special Interest Deposit Account. It pays 4% on balances up to €15,000, you can deposit anything from €1 to €1,000 per month and you can access your money whenever you want without notice. Hopefully you'll reach the €15,000 limit some day and then you'll have whole new challenge finding the best lump sum account!
Personal Finance expert Simon Moynihan from www.bonkers.ie, a financial comparison site, is here to answer your money queries. If you've a question you'd like Simon to answer simply email firstname.lastname@example.org or drop a line to Bonkers expert, Woman's Way, Rosemount House, Dundrum Road, Dublin 14.
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