We don't like low rates for children

Where's the pleasure of seeing your child's hard-saved pennies turn into, well, just more pennies?

Banks and building societies offering children's accounts are full of brochures encouraging parents to save for their child's future. But what they fail to tell you is what low interest rates many pay in return.

Let your child's pocket money and gift money sit in one of the many high street instant access accounts and watch it stay stagnant. Take Abbey National's instant access children's account. It pays an incredibly low 0.10% on balances up to £500. Above this it pays 0.20%.

Delve deeper and you'll find Abbey National pays a highly attractive 4.5% on its four-year children's saving bond, fixed on £500 and over. As ever, it pays to shop around.