Martin Lewis reveals best children’s savings account as he issues warning to parents

Martin Lewis reveals best children's savings account as he issues warning to parentsThis Morning, ITV

Transcript

00:00 Lauren says, "What's the best savings account for our baby?"

00:02 We want to open a savings account for our baby,

00:04 who is currently five months old. Congratulations, Lauren.

00:07 What's the best type of account for them to open? Congratulations.

00:10 If you're putting money away each month,

00:11 you've got the Saffron Building Society in Halifax

00:14 paying 5.8% and 5.5% for monthly savings,

00:19 so putting, say, up to £100 a month for them.

00:21 If you want to put lump sums away,

00:22 the Nationwide is the best children's savings account,

00:25 paying the 5% flat on lump sum amounts.

00:27 So those would be the places I would start to look

00:29 and I wish you huge congratulations.

00:31 Can I say something that no new parent wants to hear from me?

00:34 I always say this, I'm the most depressing person in the world, I'm sorry.

00:37 The other thing I always suggest new parents look at

00:40 is something like level term life assurance,

00:43 which, heaven forbid, one of the parents,

00:46 if you're a single parent, you were to lose your life,

00:48 which you look at making sure that money would be paid

00:51 over the next 20 years while they're a dependent child

00:54 to give them...to supplement the lost income,

00:57 your lost income if you or your partner are working.

01:00 It's worth...go and do some reading on it.

01:02 But the other thing, people always ask about children's savings,

01:05 they don't ask about level term life insurance.

01:07 And there's one in 30 children will lose a parent

01:12 before the age of 18, and I was one of those children,

01:14 which is why I'm quite passionate about it.

01:16 I think it is a sensible thing to go and do some reading

01:18 and look at the same time.