A savings account for your child provides an excellent way of getting them into the habit of saving.

Child savings accounts are usually divided into accounts for children under 12 and those between 13 and 17, although the age ranges will vary.

Child savings accounts for the under 12's often come with some form of welcome pack containing 'things to do' and special offers. Because children don't tend to have vast quantities of cash to save, most accounts can be opened with as little as £1.

Similarly, in most cases, savings accounts for teenagers can also be opened with a minimum balance of £1. The account often comes with a passbook for depositing and withdrawing cash as well as a cash card for withdrawing cash from cash machines. It is becoming more and more common to be able to manage child savings accounts via the internet.

Interest rates are usually banded according to the balance in your account, meaning the more money you save the higher the rate of interest you'll earn.