Nationwide BS launches new children’s savings account paying a competitive 5%

The FlexOne Saver is available to children between the ages of 11 and 17 who hold a FlexOne current account.

In a bid to foster healthy savings habits among children, Nationwide BS launched a brand-new easy access savings account yesterday, with a competitive rate of 5.00% AER.

“Our FlexOne Saver provides young people with a place for their savings, offering a competitive interest rate and with no restrictions on withdrawals,” said Tom Riley, Nationwide’s Director of Retail Products.

Riley went on to say this latest addition “will also ensure that our youth current account remains one of the most compelling accounts available”.

The FlexOne Saver can be applied for in branch by or on behalf of children aged between 11 and 17. Alternatively, those aged 13 to 17 can open the account online or using the Nationwide BS mobile banking app.

While no minimum deposit is required to open this account, interest is paid on anniversary on balances between £1 and £5,000.

However, in order to apply, your child will need to open a FlexOne current account from Nationwide BS if they don’t already hold one. Once again, a parent or guardian can apply for this account on behalf of a child.

It can be managed online, in branch or by app until the child turns 23, at which point it reverts into an instant access savings account where the relevant rate and conditions apply.

This easy access account permits an unlimited number of penalty-free withdrawals at any time.

Coventry BS offers the best rate when it comes to children’s easy access savings accounts with its Young Saver paying 5.25% AER monthly on deposits between £1 and £5,000.

Paying 5.00% AER, the FlexOne Saver from Nationwide BS takes a competitive position within the market, alongside accounts from HSBC.

Alongside the launch of a new account, Nationwide BS customers who hold a FlexOne Regular Saver will have seen this rate increase to 5.00% AER as of yesterday.

However, as this account is currently off-sale, if you’re looking for a regular savings account you’ll need to consider alternative options.

Another account from Nationwide BS leads the regular savings market. Its Flex Regular Saver Issue 2 allows deposits of up to £200 a month and pays 8.00% AER on anniversary if no more than three withdrawals are made in a year. This account can be applied for online or by mobile banking app by savers aged 16 or over.

More information on this, and other accounts available, can be found in our charts.