Commenting on the launch of Santander’s new children’s account, the 123 Mini – Jafar Hassan, personal finance expert at Uswitch.com, says: “Santander’s latest offering makes the account a strong contender for parents in the market for a children’s current account. With the six-month anniversary of the Current Account Switch Guarantee fast-approaching on the 16th March, financial providers are once again upping their game in a bid to win over customers. The launch of the 123 Mini account not only helps strengthen Santander’s 123 brand, but is a further indication that it is trying to become the ‘all things to all people’ bank.
“Introducing enticing offers for children’s bank accounts is a clever way of attracting new customers for life. Yet while a 3% AER savings rate may appear attractive in the current environment, parents should not be too drawn in by the idea of tax-free savings. As subject to HMRC rules, most children in this country will not pay tax, unless they earn over £9,440 in a year. With other products such as the Halifax Kids’ Regular Saver account offering a massive 6% AER, and the Bank of Scotland Young Saver account paying 3% AER, it remains to be seen whether the 123 Mini is really bringing anything new to the table.
“This product is for anyone aged 0 to 18 and will adapt to the child’s needs as it grows up, so that by the time it reaches adulthood, it will have a full service current account without the need to open another. The 123 Mini rewards customers with 1.00% AER tax-free on the total account balance from £100, 2.00% AER tax-free on the total balance from £200, and 3.00% AER tax-free on the total account balance from £300 up to a maximum of £2,000.”
Alexa Wheeler
Phone: 0207 1484 661
Email: alexa.wheeler@uswitch.com
Twitter: @uswitchPR
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