I managed to save £12k for my grandchildren using account | Personal Finance | Finance
A grandmother from Mansfield has successfully saved £12,700 for her two grandchildren by using a simple yet effective savings strategy. With 13-year-old Joseph and 11-month-old Hazel in mind, Jane Berney, 59, has been consistently saving to give them “a bit of a start in life”.
She began saving for Joseph when he was just six months old, initially with Nationwide. However, when the building society stopped offering passbook accounts, she transferred both grandchildren’s savings to Nottingham Building Society. For Hazel, she started saving as soon as she received her birth certificate.
The choice to use passbook accounts, which come with a physical booklet to record all of the account activity, holds a special meaning for Mrs Berney. She told Express.co.uk: “I grew up with them as a child myself. I just think it’s something for the grandchildren to see.”
Together with her husband, Mrs Berney sets aside £125 a month for each grandchild, paying the money directly into the savings accounts by standing order.
Additionally, they save loose change collected in a tin at home, which has allowed them to amass £11,700 for Joseph and just over £1,000 for Hazel so far.
The couple has invested in Nottingham Building Society’s Young Saver accounts, which offer a 3.8 percent interest rate with instant access and no penalties. Savers can start with as little as £1.
Reflecting on why saving for her grandchildren is so important, Mrs Berney explained: “You want to do what you can. When my sons were growing up, I didn’t have any spare money to save for them.”
Now, with more disposable income, she is in a better position to support her grandchildren financially. She said: “I just thought, in the future, it might let them go travelling, or it might go towards a deposit on a house. It’s just to give them a little bit of a start in life, really.”
Although the rising cost of living has impacted her ability to save as much as she’d like, Mrs Berney has ensured the children’s savings remain consistent. She said: “Obviously, I can’t save as much as I would like… but I’ve managed to keep the children’s going at the same amount.”
Recent research from the Building Societies Association (BSA), as part of UK Savings Week, revealed that around 14 million people in the UK have less than £100 in savings. Adding insult to injury, over one in four adults (28 percent) who can save hold most of their money in current accounts that pay no interest. Additionally, a third (31 percent) of savers never compare interest rates on their accounts, potentially missing out on over £800 a year in additional income.
Andrew Gall, head of savings and economics at the Building Societies Association, commented: “It’s sad to see that so many people who have successfully managed to build a savings pot are missing out on several hundred pounds of interest a year. This additional money could make a big difference in how people enjoy their savings, providing them with greater financial resilience and helping them reach their goals sooner.”
Mr Gall also noted that UK Savings Week, which concluded on September 15, was focused on encouraging good savings habits. He added: “That’s not just about the habit of putting money aside regularly, but also making sure your savings are working as hard as possible for you. We want to show people of all ages that moving their savings is a straightforward and very rewarding process.”
