Spring is the season to start building a nest egg

Kevin Gray, CEO of Bath Building Society

During the Easter holidays, my eldest daughter had an idea for creating some festive confectionary.  Out of the kitchen cupboard came a box of Shredded Wheat, a bar of chocolate and a packet of mini eggs.


After an hour resembling The Great British Bake Off, there before me lay 12 beautiful chocolate cupcakes closely resembling birds’ nests complete with orange eggs.  Artistically, they looked great, but they tasted even better!  My daughter has proved to be very capable at creating delicious egg nests.  That got me thinking that she should also get on with Spring cleaning her finances and start building a financial nest egg.


What is offered by the government and financial institutions to help young adults save for their futures?  Using the principle that ‘starting them young’ is the best method of getting children into a savings habit, most banks and building societies offer savings accounts specifically aimed at children. Many of these accounts offer interest rates that are well above the average for adult savings accounts.  The government also permits £9,000 per tax year to be saved into Junior ISAs (JISAs) in the form of either cash or stocks and shares.  Children take control of JISAs once they turn 16 but they cannot withdraw funds from JISAs until they turn 18.  My own institution, Bath Building Society (BBS), offers a ‘Junior Saver’ account with a rate of interest of 2.35% and a ‘Cash JISA’ with a competitive interest rate of 3.15%.  These accounts are proving to be popular, and our JISA product was recently awarded the Best Junior ISA in the Savings Champion Awards 2022.

Using the principle that ‘starting them young’ is the best method of getting children into a savings habit, most banks and building societies offer savings accounts specifically aimed at children.

Part of the social purpose of BBS is to improve the lives of its Members by promoting saving as a means of achieving financial security.  The Society has a strategic desire to grow the number of savers from the 18-35 demographic group and it has two regular saver accounts available to encourage regular saving amongst this target community.  The BBS ‘16-25 Regular Saver’ account is for 16-25 year olds who live, work or study in Bath and who can save between £10 and £50 per month (up to a maximum of £7,000).  This account earns a superb rate of interest of 4.65%.  The BBS ‘Homestart Regular Saver’ account is specifically for 18-35 year olds who wish to save for a deposit for their first home.  This account permits between £50 and £250 to be saved each month (up to a maximum of £57,000) and it earns a rate of interest of 1.80%.  Both accounts permit two withdrawals per calendar year.

The government allows those between 18 and 40 years of age to open a Lifetime ISA (LISA) and to save up to £4,000 per annum until the saver reaches 50.  LISAs can hold cash or stocks and shares or a combination of both.  The government adds a 25% bonus to each LISA (up to a maximum of £1,000 per annum) until the saver reaches 50.  The government contribution makes the return on LISAs particularly attractive.  Penalty free withdrawals can be made from LISAs once a saver reaches 60 or when they purchase their first home.  Any other withdrawals result in a charge of 25% of the amount withdrawn.  BBS will soon be offering a cash LISA product to add to its range of accounts that are aimed specifically at young adults.

The large High Street banks sometimes offer inducements to graduates, new starters etc to open current accounts with them.  BBS does not offer short term inducements, nor does it provide current account services.  The Society has firmly pitched its flag in the savings institution space rather than amongst the providers of payment services.  However, BBS fully understands that young adults will not save with anyone that cannot offer mobile technology to assist them with operating a savings account.  As such, BBS will be offering a mobile app later this year to all of its customers who wish to use it.  This will allow transfers back to customers designated current accounts with other institutions.


Of course, as with many things in life, it is only the lucky few who can afford to be able to take advantage of all the savings opportunities that are available to them.  Nest eggs often have to be built slowly and so BBS wishes to offer practical savings options for every young adult, no matter what their situation might be.

If you think that BBS could be of help to grow your nest eggs, then have a look at the Savings accounts on our website at www.bathbuildingsociety.co.uk or you can speak to our Customer Service Team on 01225 423271, or call into one of our Branches or Agencies.


All quoted rates of interest were correct as of 1st May 2022.

Rates will change on 1st July 2022 as follows:
Homestart Regular Saver – 2.05%
16-25 Regular Saver – 4.90%
Junior Saver – 2.50%
Junior Cash ISA – 3.30%




15 Queen Square, Bath BA1 2HN

Tel: 01225 475730