A new account aimed at Generation Z adults taking their first step into investing has been created by Lloyds Bank.

Invest Wise carries no admin fee for 18 to 25-year-olds and account holders can operate it alongside their everyday banking in the Lloyds Bank app.

From the age of 26, the admin fee is £40 per year.

People can invest into an Invest Wise Isa or a non-Isa Invest Wise account, putting away from £20 per month.

The service will be available to Halifax and Bank of Scotland customers, called 18-25 Investing.

The value of investments can go down as well as up and investments are intended to be for the longer-term. Some people who are looking for guaranteed returns may prefer to keep their savings in cash. Some people may also want to consider getting financial advice when deciding what to do with their money.

An Opinium survey for Lloyds found that buying a house or paying off a mortgage is the top investment goal among 18 to 25-year-olds.

Two-fifths (42%) also said they turn to their parents for help with money.

Manuel Pardavila-Gonzalez, managing director at Lloyds Bank Investments, said: “Seeing more young people switched on to investing and using it to connect with their life goals means we need to do more to help them start making their money work harder now.

“Parents can also play an important part in talking about managing money and financial future with the family.”

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: “The Invest Wise account and Invest Wise Isa could be an enticing way for consumers to dip their toe into funds, and those aged between 18 to 25 don’t pay an admin fee.

“The convenience to monitor these accounts within the Lloyds app may also be helpful to those who want to keep a close eye on their pots, and prefer mobile banking.

“Traditionally, stocks and shares Isas would be chosen by investors who are prepared to invest for better returns over the longer-term on the basis that performance might fluctuate over shorter timescales but it is essential (for investors) to regularly check the performance of their pot and seek advice if they need to review their risk profile.

“Those who want to start saving for their first home could open a Lifetime Isa, where the Government will apply a bonus of 25% on contributions, but savers will need to check the terms and conditions of these accounts to ensure it suits their needs.

“The most suitable account for any saver will depend on their own circumstances. Those considering stocks and shares must keep in mind that past performance is never guaranteed to be reflected in future returns, so it’s crucial investors are comfortable with their attitude to risk.

“Those who are unsure may avoid investing altogether and keep their pot earning interest instead, but this attitude is always worth reviewing.”