The unique account represents a breakthrough in the way foster children can build up savings during their time in care. It removes all the administrative barriers of previous accounts, making the process far easier for the UK's 40,000 children in care to save.
By adapting an existing product used by professional services firms - the CMA (Client Monies Account) - RBS has enabled the NFA to hold savings accounts on behalf of all the children and young people it looks after with its foster carers.
Held in trusteeship by the NFA and administered by RBS, the new Children's Savings Accounts will be opened automatically by the agency at the beginning of a child's placement with a family. Funded by weekly deposits, monies will be automatically deducted from foster carers' allowance ensuring minimal disruption.
An existing client of RBS, the NFA had requested a savings solution in response to concerns raised by their foster carers, many of whom had encountered obstacles when attempting to open and manage trustee savings accounts on behalf of those in their care. Ensuring children "achieve economic well-bring" is the fifth tenet of the Department of Education's Every Child Matters campaign and the NFA was determined to find a practical way to offer formal savings accounts for foster children.
Iain Anderson, Chief Executive of the NFA, said: "Many of our carers have faced difficulties in opening savings accounts for the young people they look after. The amount of paper work and administration required was very challenging and it proved a logistical nightmare for many people. I am delighted that we now have a solution for all our carers and are able to provide those in foster care with NFA a great opportunity to build for their economic future".
Peter Russell, Head of the Healthcare Sector for RBS Corporate & Institutional Banking, said: "By designing this solution, we have aimed to provide a product that not only takes away the hassle of managing savings accounts from foster parents but also allows a young person to build up a nest egg.
"With this initiative, we hope to promote an informed approach to handling money - the need for every young person to have access to savings is more essential than ever. By developing these types of products, it will ensure that no one in the care of the NFA is disadvantaged by their situation."
Iain Anderson at the NFA added: "It is essential that the NFA does all it can to support children "achieving economic well-bring" and work towards a successful adult life and I would like to thank RBS for delivering this particular solution. There is a large shortage of foster carers throughout the UK and the NFA is recruiting in most areas of England, Scotland and Wales. It is a worthwhile occupation where carers receive a generous tax-free weekly allowance, and importantly can make a real difference to the quality of life of a child or young person. Please visit our website."