Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Saving and Investing for Children - UK - February 2013

“Even during a period when the Bank of England base rate is at a historical low, only 4% of parental savers show an increased interest in non-traditional products, such as equity-based investments. These attitudes are reflected on a wider level among British investors, with very few adults actually confident to engage and invest in such products.”
– Stevan Obradovic, Financial Services Analyst
Some questions answered in this report include:

  • Have low interest rates made parents more interested in less traditional products?
  • How is the Junior ISA market performing a year after launch?
  • What do parents look for when taking out children’s savings products?
  • What lies ahead for the Child Trust Fund sector?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Introduction

      • Abbreviations
      • Executive Summary

          • The market
            • Children’s savings accounts and CTFs are the most widely owned products
              • Figure 1: Preferred products for children’s savings, December 2012
            • Market factors
              • Low interest rates are hampering returns, especially when accounting for inflation
                • Parents should consider equities for long-term savings goals
                  • Children are getting significantly less pocket money than pre-2008
                    • Companies, brands and innovation
                      • Lloyds Banking Group is most likely the lead provider of children’s savings accounts
                        • Brand promotion
                          • Who’s innovating?
                            • The consumer
                              • Saving on behalf of children
                                • Figure 2: Saving on behalf of children, December 2012
                              • Motivations for saving on behalf of children
                                • Figure 3: Savings motivations, December 2012
                              • Influential factors for product uptake
                                • Figure 4: Important factors when choosing a savings product, December 2012
                              • Parental attitudes towards children’s savings
                                • Figure 5: Parents’ attitudes towards children’s savings, December 2012
                              • What we think
                              • Issues in the Market

                                  • Have low interest rates made parents more interested in less traditional products?
                                    • How is the Junior ISA market performing a year after launch?
                                      • What do parents look for when taking out children’s savings products?
                                        • What lies ahead for the Child Trust Fund sector?
                                        • Trend Application

                                          • A family day centred around the importance of saving
                                            • Happy Birthday, here is your present from us
                                              • Mintel futures: Old Gold
                                              • Market Drivers

                                                • Key points
                                                  • Junior ISAs fail to invigorate the children’s savings market
                                                    • Low interest rate environment is hurting savings returns
                                                      • Figure 6: UK inter-bank, three-month rate+ and selected UK bank rates*, January 2002-November 2012
                                                    • Equity-based investments can be a good long-term strategy
                                                      • Figure 7: Performance of the FTSE-100 index, January 2007-December 2012
                                                    • UK savings ratio below 2009 levels, but is on the up
                                                      • Figure 8: UK savings ratio, 2005-12
                                                    • Growing childbirth rates present opportunities for providers
                                                      • Average pocket money has still not recovered to pre-recession levels
                                                        • Figure 10: Trends in average weekly pocket money received by 8-15 year-olds, 2003-12
                                                      • Difference in how boys and girls spend pocket money
                                                        • Figure 11: How children spend their pocket money, boys vs girls, April 2012
                                                    • SWOT Analysis

                                                        • Figure 12: Children’s saving and investing market – SWOT analysis, 2013
                                                    • Who’s Innovating?

                                                      • Key points
                                                        • Halifax ties in adult and Junior ISAs for a booster rate
                                                          • Comeback of the NatWest piggy bank
                                                            • Roosterbank takes the piggy bank online
                                                              • Saving for children and helping charitable causes
                                                                • Nationwide supports The Snowman sequel
                                                                  • PKTMNY launches prepaid debit card for children
                                                                  • Market Size

                                                                    • Key points
                                                                      • Children’s savings accounts and CTFs are the most widely owned products
                                                                        • Figure 13: Preferred products for children’s savings, December 2012
                                                                      • Junior ISAs still have potential, but require support and potential tweaks
                                                                        • Figure 14: Number of Junior ISAs, amounts subscribed and average subscription, 2011*/12
                                                                      • CTFs peak at around 6.3 million opened accounts
                                                                        • Figure 15: Total number of CTF vouchers and total number of accounts opened, January 2005-June 2011
                                                                    • Market Share

                                                                      • Key points
                                                                        • Junior ISA market open for a dominant player
                                                                          • Lloyds Banking Group is the number one in the adult savings market
                                                                            • Figure 16: Ranking of largest providers of savings accounts, by product sector, February 2012
                                                                        • Companies and Products

                                                                          • Barclays
                                                                            • Family Investments
                                                                              • HSBC
                                                                                • Lloyds Banking Group
                                                                                  • Nationwide
                                                                                    • NS&I (National Savings and Investments)
                                                                                      • RBS
                                                                                        • Santander
                                                                                          • The Children’s Mutual
                                                                                          • Brand Communication and Promotion

                                                                                            • Key points
                                                                                              • Adspend on children’s savings and investment products down by 37%
                                                                                                • Figure 17: Topline advertising expenditure on children’s savings and investment products, 2010-12
                                                                                              • Top three advertisers account for around two thirds of adspend
                                                                                                • Figure 18: Advertising expenditure on savings and investment product for children, by advertiser, 2010-12
                                                                                              • Press campaigns continue to dominate adspend
                                                                                                • Figure 19: Advertising expenditure on children’s savings and investment products, by media type, 2010-12
                                                                                              • Junior ISA advertising actually shrank in first full year of availability
                                                                                                • Figure 20: Topline advertising expenditure on Junior ISAs, 2011-12
                                                                                              • A note on adspend
                                                                                              • Channels to Market

                                                                                                • Key points
                                                                                                  • The majority of children’s products are available exclusively in-branch
                                                                                                    • Figure 21: Select product availability, by distribution, February 2013
                                                                                                  • Adult savings accounts are mostly accessed online
                                                                                                  • Saving on Behalf of Children

                                                                                                    • Key points
                                                                                                      • Over half of parents save for their children
                                                                                                        • Figure 22: Saving on behalf of children, December 2012
                                                                                                      • Parental desire to save is not always enough
                                                                                                        • Figure 23: Saving on behalf of children, by demographics, December 2012
                                                                                                      • Rental obligations can have a detrimental effect on saving ability
                                                                                                        • Figure 24: Parents saving on behalf of their children, by accommodation status, December 2012
                                                                                                      • Potential for M&S Bank to develop children’s savings products
                                                                                                      • Children’s Savings Products

                                                                                                        • Key points
                                                                                                          • Children’s savings accounts and CTFs are the most widely owned products
                                                                                                            • Figure 25: Preferred products for children’s savings, December 2012
                                                                                                          • Junior ISA uptake has been slow, but there are some encouraging signs
                                                                                                            • Very few products are used by parent savers
                                                                                                              • Older parents less likely to contribute to CTFs
                                                                                                                • Figure 26: Preferred products for children’s savings, by age, December 2012
                                                                                                              • Affluence dictates product ownership
                                                                                                                • Figure 27: Preferred products for children’s savings, by age, December 2012
                                                                                                            • Motivations for Saving on Behalf of Children

                                                                                                              • Key points
                                                                                                                • University/education costs are the most important reasons for saving
                                                                                                                  • Figure 28: Savings motivations, December 2012
                                                                                                                • General savings and child encouragement also popular among parents
                                                                                                                  • Product suitability can depend on savings motivations
                                                                                                                    • Figure 29: Savings motivations, by preferred products for children’s savings, December 2012
                                                                                                                • Influential Factors for Product Uptake

                                                                                                                  • Key points
                                                                                                                    • Parental control is most important for product choice
                                                                                                                      • Figure 30: Important factors when choosing a savings product, December 2012
                                                                                                                    • Interest rates and provider familiarity are also important to parent savers
                                                                                                                      • Ethical practices, internet access and other services appeal to a minority
                                                                                                                        • Higher-income families more likely to want control and better returns
                                                                                                                          • Figure 31: Important factors when choosing a savings product, by household income, December 2012
                                                                                                                        • Parents looking for control slightly more likely to venture outside of CTFs
                                                                                                                          • Figure 32: Preferred products for children’s savings, by important factors when choosing a savings product, December 2012
                                                                                                                      • Parental Attitudes Towards Children’s Savings

                                                                                                                        • Key points
                                                                                                                          • Teaching and encouraging children to save is important to a larger number of parents
                                                                                                                            • Figure 33: Parents’ attitudes towards children’s savings, December 2012
                                                                                                                          • A large number of parents save irregularly, while some are simply struggling
                                                                                                                            • Junior ISA awareness and interest in alternative products are low
                                                                                                                              • Birthday/pocket money contributions more likely to be invested outside of CTFs
                                                                                                                                • Figure 34: Preferred products for children’s savings, by parents’ attitudes towards children’s savings, December 2012
                                                                                                                                • Figure 35: Parents who encourage children to save birthday/pocket money, by savings motivations, December 2012
                                                                                                                            • Appendix – Saving on Behalf of Children

                                                                                                                                • Figure 36: Saving on behalf of children, by demographics, December 2012
                                                                                                                            • Appendix – Children’s Savings Products

                                                                                                                                • Figure 37: Preferred products for children’s savings, December 2012
                                                                                                                                • Figure 38: Less popular children’s savings products, December 2012
                                                                                                                            • Appendix – Motivations for Saving on Behalf of Children

                                                                                                                                • Figure 39: Savings motivations, December 2012
                                                                                                                                • Figure 40: Less important savings motivations, December 2012
                                                                                                                            • Appendix – Influential Factors for Product Uptake

                                                                                                                                • Figure 41: Important factors when choosing a savings product, December 2012
                                                                                                                                • Figure 42: Less important factors when choosing a savings product, December 2012
                                                                                                                            • Appendix – Parental Attitudes Towards Children’s Savings

                                                                                                                                • Figure 43: Parents’ attitudes towards children’s savings, December 2012
                                                                                                                                • Figure 44: Parents’ attitudes towards children’s savings continued, December 2012

                                                                                                                            Companies Covered

                                                                                                                            • Barclays Bank plc
                                                                                                                            • Cheltenham & Gloucester plc
                                                                                                                            • Family Assurance Friendly Society
                                                                                                                            • Grupo Santander Central Hispano S.A.
                                                                                                                            • HBOS plc (Halifax Bank of Scotland)
                                                                                                                            • HSBC Holdings plc
                                                                                                                            • Lloyds Banking Group
                                                                                                                            • Nationwide Building Society
                                                                                                                            • NatWest
                                                                                                                            • NS&I
                                                                                                                            • Post Office Limited
                                                                                                                            • Royal Bank of Scotland Group plc
                                                                                                                            • Scottish Widows Bank plc
                                                                                                                            • Visa Europe

                                                                                                                            Saving and Investing for Children - UK - February 2013

                                                                                                                            US $2,672.70 (Excl.Tax)