Where the young can stash their cash

Banks and building societies make a real effort to attract pocket money and other sums from children, or their families - often with interest rates that adults can only dream of.

MoneyFacts listings show Alliance & Leicester's First Saver pays 5.5% a year from £1 for an instant access branch based account -grown ups can get as little as 0.8% on an account with restrictions on withdrawals.

First Saver works for children from birth to 16. But many others reduce rates as the child gets older. NatWest's Young Saver pays 4.35% for children up to 11. Secondary school age children receive 3.35%. But the older ones get a cash machine card - and a free CD if the initial deposit is £10.

As a rule, the higher the rate paid, the less enticing the freebies or other incentives. The Alliance & Leicester First Saver has no attractions other than the interest rate.

But many do offer children something more substantial than a paying-in book. · Abbey's Flexible Saver for Kids pays 4.5% with a choice of a cuddly toy or a radio. · Britannia - at 4.55% - has a variety of football team related accounts. Those for Chelsea, Ipswich Town and Sunderland have special embossed passbooks. But fans of Liverpool and Manchester United have to make do with plain books. · Stafford Railway's Junior Express has a money box. Local savers have to put in £10; others need to find £250.

Two banks pay far less but have more high-minded ob jectives. The Small Steps Account from Charity Bank allows savers to choose rates from 0% to 2% per annum gross. The waived interest helps lower that charged to charities that borrow. Minimum opening deposit is £10.

But it is not tax efficient for a non-taxpaying child to give money to good causes. Triodos Bank, which specialises in ethical and green investment, pays 3% to 3.25% - with no freebie frills other than a feelgood feeling.