Halifax launches 10% savings rate account

28.06.2005 8th JUNE 2005
Halifax, the UK's number 1 children's savings provider, with 5 million accounts, today announces the launch of Halifax Children's Regular Saver.  The account will be launched on 13th June 2005, offering customers, who save between £10 and £100 every month, a fixed rate of 10% Gross on their savings for a year.


The Halifax Strategy
Halifax's strategy, of encouraging people to save again, has been very successful.  Since its launch, just over 12 months ago, customers have opened over 370,000 Halifax Regular Saver accounts, saving on average £170 a month.  This new account addresses another important segment of the savings market – adults wishing to save for children on a regular basis. 
According to new research conducted for Halifax by BMRB, 54 per cent of adults with children or grandchildren are concerned about key expenditure, like the child's education or a deposit on a first home for them.  Yet, just under two-thirds of adults (63%) save nothing on behalf of their children, grandchildren or other relatives and godchildren.
The research also found that of those adults that do save for children, three quarters (73%) save monthly or more often, with almost 9 out of 10 regular savers saving £100 or less each month per child.  This profile fits well with the customers' ability to save between £10 and £100 in the Children's Regular Saver account.
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Key Features of Children's Regular Saver:

• 10% Gross interest, fixed for a year.
  
• Deposit between £10 and £100 each month by standing order from a bank account every month.  Deposits can be varied month to month within these amounts.
  
• Open to new and existing customers, with one account per adult on behalf of each child.
  
• Each year the capital and interest are swept into either a Halifax save4it, a "Best Buy" account, or an existing Halifax savings account held by the adult on the child's behalf.  The Children's Regular Saver account then remains open and deposits can continue to be made.
  
• If the account is closed early, the rate of interest will be at the save4it rate – (currently 5.05% Gross) for the period of investment.
  
• Children will be able to receive gross interest following registration by a parent/guardian.
  

• Unlike some other banks, customers are not obliged to take a low interest current account in order to open Halifax Children's Regular Saver.
  

Children's Regular Saver complements the existing children's savings accounts Halifax offers; in particular, save4it and Halifax Monthly Saver. 
For those children who are eligible for Child Trust Fund Accounts, Children's Regular Saver provides an opportunity for parents or family to invest to the maximum £1,200 in a Child Trust Fund, such as Halifax Stocks and Shares Child Trust Fund, each year.  The new account is also ideal for those whose children are ineligible for a Child Trust fund account but wish to save regularly for them.
Cheryl Millington, head of savings at Halifax, said:
"Bringing up children is more and more expensive.  So, the most effective way to meet those costs is to start early and plan ahead.  Children's Regular Saver makes regular saving for a child's future available to everyone by paying the best rate available on even small monthly deposits."
Ends.

Editor's Notes
Halifax is the UK’s largest provider of savings.
Halifax was voted "Most Parent Friendly Bank" for the second year running in 2005 by Tommy's the baby charity.
Halifax Regular Saver was launched in March 2004, it currently pays 7% Gross.
The research was conducted by BMRB between 14th –15th May 2005, 2000 adults over 16 were interviewed.
According to ONS figures the UK population stands at 59.2 million, 20 per cent of which are under 16 (11.84 million).
*If a payment is missed, the account will close, funds swept in to the nominated account and interest paid at the save4it rate for the period funds were invested.
Other Children’s Accounts:

Organisation	Account	Rate Gross
Halifax	Halifax Children's Regular Saver	10% Fixed
Halifax	Monthly Saver (Children’s Rate)	5.6% (includes bonus)
Halifax	Save4it	5.05%
Nationwide	Smart	4.95%
Barclays	Junior Barclay Plus	Up to 4.75%
Lloyds	Young Saver	4.67%
Abbey	Flexible Saver	4.50%
Nat West	Young Saver	4.35%
Royal Bank of Scotland	Rainbow Savings	4.35%
HSBC	Young Savers	4.25%