A&L and HSBC attractive to teenagers

by Gill Montia

Story link: A&L and HSBC attractive to teenagers

Two leading banks have recently launched accounts aimed at teenage customers and young people.

Alliance & Leicester is offering its Premier 21 account, paying 10% interest on balances up to £1,000 until July 2008. If the balance exceeds £1,000 the interest rate reverts to just 0.1%.

Premier 21 account holders are also eligible for a Plus Saver Account, which pays 4.8% AER, includes a debit card and account access via the Internet, telephone and mobile phone. There is also an overdraft facility but this is only available for those aged 18-years and over.

In June, HSBC introduced its MyMoney scheme for 7 to 17 year-olds. It offers a savings account paying interest at 5.25% and a linked current account for those aged 11 and over.

The recent offerings from both Alliance & Leicester and HSBC compare favourably with other products aimed at children and young people.

Lloyds TSB provides a current account for those aged under 19 but it pays only 3.3% in-credit interest.

The Abbey pays 1.5% on in-credit balances for young account holders and will provide a debit card and an overdraft facility, once the young person is in employment.

The Royal Bank of Scotland’s R21 account pays 2.27%. The account can go up to £100 into the red before overdraft charges apply but charges, when applied, are high.