Extra interest for kids! (Bradford & Bingley)

Member Name: Daisy

Product:	Bradford & Bingley
Date:	14/04/02 (541 review reads)
Rating:

Advantages: competitive interest rates, possibility of a free book

Disadvantages: they don't have a huge branch network

I first had dealings with the Bradford and Bingley building society back in1998 when I was researching the best place to open an account for my children.. After much research on my part their Kidzone account was near the top of the list and we duly opened two accounts.

Obviously the Kidzone account is specially designed for children, more specifically for those ages 14 and under. Opening an account is relatively straightforward. As this is an account for children it has to be operated as a trustee account i.e. someone else operates the account on their behalf (usually, but not exclusively the parent). The trustee has to provided proof of identity (unless they already have an account with Bradford and Bingley) for themselves together with the children?s birth certificate. The documents can either be handed in at the nearest branch, or sent direct to the head office. In all the whole process took about 10 days before we received confirmation that the account had been opened.

The account is operated like many instant access savings accounts by using a passbook, which gives details of transactions and the most recent balance. As this is a trustee account withdrawals must be made by the trustee on the child?s behalf (this rather irritates my now eight year old daughter!).

One of the main reasons that I decided to open the account was the very competitive interest rates. Although rates are currently not as good as they once were, interest is now paid on balances of £1-£499.99 at 4.75% and at 4.80 on balances over £500. Interest is paid yearly and credited to the account on 31/03/02. As most children are not liable to pay tax on their savings you should complete an Inland Revenue form (sorry can?t remember the number, but the building societies all hold them) to ensure that the interest is paid gross (i.e. with no tax deduction).

So for me as a parent the account had some good features, but what about the kids, what?s to encourage them t
o save their pocket money instead of squandering it? One special feature of the account is the Book Club. If they make at least three deposits in the period from 1st April to 31st March they can then choose a free book from the Bradford and Bingley?s own book club. A leaflet is sent each year with the interest statement and the books are divided into age categories, making it easier to make a choice

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