A growing number of residents in Shanghai prefer to save their money in two ways: they open tax- free education savings accounts or foreign currency accounts.

Although China started a tax levy on interest from November 1, educational savings accounts -- a new service which started in September -- are exempt from the tax.

Anyone who opens an educational savings account will be entitled to receive 25 percent more interest than from other savings account schemes.

The Shanghai branch of the Bank of China reported that foreign currency deposits in October were 200 million US dollars more than the same period last year.

Rapid rise in foreign currency deposits were also reported at the Shanghai branch of the Bank of Communications and Shanghai branch of the Industrial and Commercial Bank of China. Experts said that such increases are attributed to the higher interest rate of foreign currency deposits.