Best Savings Account??

mae

My son who is 15 has a current account with the Yorkshire Bank. This is ok as he can use his mini bank card when needed etc but he is now saving as much as he can and I was wondering which was the best way of getting the most from his money he can now transfer £500 into any kind of savings account/policy and everytime he has another hundred he wants to transfer this too. Has anybody got any suggestions? thanks in advance

Sillychuckie

First of all, give your son (and yourself) a good pat on the back. It is great he is thinking about saving already at the age of 15, and having interest come in will certainly be of further inspiration.
An online savings account is probably best for him as they tend to offer reasonable rates (and instant access) on small sums, but you'll need to look into age requirements. Take a look at the MSE article on the current best savings accounts and check out moneysupermarket.com.
A further thing I'd advise, (even if it means taking a tiny cut on interest rate) would be to get an account that pays interest monthly.
This will make a huge difference to your son when he can actively see his £500 earning money each month, making him richer.
Again, I suggest looking at the articles available but if all else fails, I know ING pay monthly (although don't offer a top rate). For the short term however (and to convince/reassure your son he is making a wise choice), ING (or another monthly payer) might be a good idea, but I'm not sure what their minimum age is.

Congrats once again, you must be very proud. I know my eyes lit up when I worked out the joys of compount monthly interest.