Abbey promotes 4% saving plan to families

Friday, 13 November 2009 12:00

Abbey is promoting one of its savings accounts as it uncovers evidence a growing number of families are not investing for their children's future.

The bank is urging parents to consider opening its Fixed Rate Monthly Saver which pays four per cent interest and allows customers to deposit as little as £20 a month.

Abbey revealed concerns that 28 per cent of British parents with young children had no savings or investments to fall back on in difficult times.

Its research showed the soaring costs of raising a child had resulted in many parents who did save reducing the amount they were putting away.

But Reza Attar-Zadeh, director of savings and investments at Abbey, said: "It's vital for everyone to have a rainy day fund even more so for parents who must juggle the need to build up a nest egg for their children's future with the need to provide for the here and now."

Abbey's monthly saver allows savers to deposit up to a maximum of £250 a month, or a minimum of £20. The bank said it would be the ideal place for savers to build up a lump sum.

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