"That fella still has his communion money" is a peculiarly Irish insult. However, for the banks and building societies the destination of your children's communion money is no joke. The 20,000 or so children who make their First Communion every year are thought to make an average of £100 on their big day. That is £2 million of which financial institutions would very much like to get a share. The traditional place for the First Communion money was the post office account. An Post allows children to start saving their pocket money on a small scale by buying 50p Cyril the Squirrel Savings Stamps. When the card's 20 spaces are full, they can open a savings account with a £10 balance. However, money cannot be withdrawn until the child reaches seven years of age. At 0.5 per cent interest per annum, your child is not going to grow up to be a millionaire.
An Post recommends buying a savings certificate, which will earn 25 per cent tax free over 51/2 years.
Rivalling Cyril the Squirrel for brand recognition is Ulster Bank's Henri the Hippo, a veritable 1980s icon who, along with partner Holly, is still going strong.
Henri is so keen on getting them young he gives new mothers a £3 Super Savers Club account opening voucher before they even leave the hospital with the newborn baby. The voucher, which is part of the Baby Bounty Scheme can be redeemed at any branch of the bank.
Henri is flaithiulach with the free gifts - new account-holders get a free money box in his likeness, an annual Henri's Howler comic and a wall poster calendar - but he's less generous with the interest payments, which range from 0.25 per cent per annum to 1.25 per cent per annum, depending on the account balance.
Bank of Ireland's Rainbow and Excel accounts, which cater for young children and teenagers respectively, are among the most generous in terms of interest on deposits. Balances up to £100 earn 2.25 per cent per annum, while balances greater than £500 make 2.75 per cent each year. BOI Excel account-holders who have saved £20 for a month are sent a free leather wallet and can use an ATM card free.
AIB offers accounts for children and teenagers with preferential rates of interest. Junior Saver new account-holders get a free money box and a birthday card from the bank until they're 12 years old. Both the Junior Saver and Teenlink accounts have interest rates of 1.75 per cent per annum. Teenlink account-holders get a Banklink ATM card and wallet, a magazine and, after three months saving, a £2 Call Card. The Irish Permanent has three accounts for children and young adults. The Billie Beanstalk account is aimed at children under eight, and offers the child an educational wallchart and a birthday card when an account is opened with a balance of £10. An unusual feature of the account is the 1 per cent bonus interest payment on offer if the child makes two or less withdrawals during a 12-month period.
The Saving Scene account is aimed at eight- to 13-year-olds, and offers a £5 book token. If the account-holder keeps £80 in the building society for three months or more they get a free watch. Both accounts earn interest of 1.5 per cent per annum on balances up to £2,999.
Irish Permanent's third youth-oriented account, Pace, caters for young adults aged from 14 to 18. On opening an account with a balance of £15 or more, the customer gets a sports bag and if they maintain a balance of £50 for six months, they get a £10 Golden Discs voucher. Pace customers can use an ATM card and receive interest of 1.5 per cent on balances of up to £1,000 and 1.75 per cent on balances of between £1,000 and £4,999.
Juvenile account-holders at the Educational Building Society are treated as adults, except for young children who receive a wallet and a birthday card from "Magic Murty".
