Spotlight: Dylan's Children's Regular Saver

It's good to teach children about saving, and most banks and building societies offer accounts specifically for youngsters.

The latest is Principality Building Society's new Dylan's Children's Regular Saver, which pays 5 per cent fixed for a year. However, the account is more suitable for parents wanting to put money away for their son or daughter, rather than for a child to save birthday, Christmas or pocket money in.

Between £10 and £150 must be deposited every month during the 12-month term, with the rate reverting to 0.9 per cent if you forget. The 5 per cent rate is good, but it's not the best – Halifax's Children's Regular Saver pays 6 per cent, although the maximum you can pay in to the account is lower at £100 per month.

If you want an account that your child can put money in to on an ad hoc basis to encourage him or her to get the savings habit, the best you can get from the big banks is Halifax's Save4it account which has a rate of 1.05 per cent.