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Best Child Savings Account

Whether you want to save for a toddler or a teenager, a children’s savings account could be an option to consider. There are a range of accounts to choose from depending on your preferences, including easy access and regular savings.

You can compare interest rates and other features on our charts to help you find the best children’s savings account for your requirements.

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Best Children's Savings Account Rates

We found 145 PRODUCTS in total, of which 2 are EASY TO OPEN

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  • Kent Reliance 60 Day Notice Savings Account - Issue 58
    AER
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    4.70%
    Account Type
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    Variable
    Notice
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    60 Day
    Interest Paid
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    Yearly
    Further Options ˅
    Go To Provider's Site
    AER
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    4.70%
    Account Type
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    Variable
    Notice
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    60 Day
    Interest Paid
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    Monthly
    Go To Provider's Site
  • Kent Reliance Easy Access Account - Issue 75
    AER
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    4.35%
    Account Type
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    Variable
    Notice
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    None
    Interest Paid
    Press for help tip
    Yearly
    Further Options ˅
    Go To Provider's Site
    AER
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    4.35%
    Account Type
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    Variable
    Notice
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    None
    Interest Paid
    Press for help tip
    Monthly
    Go To Provider's Site
  • HSBC HSBC Premier MySavings
    AER
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    5.00%
    Account Type
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    Childrens
    Notice
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    None
    Interest Paid
    Press for help tip
    Monthly
  • HSBC MySavings
    AER
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    5.00%
    Account Type
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    Childrens
    Notice
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    None
    Interest Paid
    Press for help tip
    Monthly
  • Nationwide BS FlexOne Saver
    AER
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    5.00%
    Account Type
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    Childrens
    Notice
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    None
    Interest Paid
    Press for help tip
    Anniversary
  • Coventry BS Young Saver
    AER
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    4.75%
    Account Type
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    Childrens
    Notice
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    None
    Interest Paid
    Press for help tip
    Monthly
  • Kent Reliance 1 Year Fixed Rate Bond - Issue 154
    AER
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    4.61%
    Account Type
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    Fixed
    Term
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    1 Year Bond
    Interest Paid
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    On Maturity
    Further Options ˅
    AER
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    4.61%
    Account Type
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    Fixed
    Term
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    1 Year Bond
    Interest Paid
    Press for help tip
    Monthly
  • Principality BS 6 Month Fixed Rate Bond (Issue 471)
    AER
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    4.45%
    Account Type
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    Fixed
    Term
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    6 Month Bond
    Interest Paid
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    On Maturity
    Further Options ˅
    AER
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    4.45%
    Account Type
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    Fixed
    Term
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    6 Month Bond
    Interest Paid
    Press for help tip
    Monthly
  • State Bank of India Jumbo Junior Fixed Deposit Account
    AER
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    4.45%
    Account Type
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    Childrens
    Term
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    1 Year Bond
    Interest Paid
    Press for help tip
    On Maturity (Compounded Annually)
  • Yorkshire Building Society One Day Account
    AER
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    4.45%
    Account Type
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    Childrens
    Notice
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    None
    Interest Paid
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    ½ Yearly
Depositor Protection

Eligible deposits with UK institutions are protected by the FSCS up to £85,000 per person per institution. Covers all new UK bank and savings accounts for UK customers.

Disclaimer

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How does a children’s savings account work?

A children’s savings account works in the same way as a standard adult’s savings account as it pays interest on the money you deposit.

However, as these accounts are designed for children under the age of 18, there are different rules around opening and managing the account.

Parents, guardians and relatives can open a savings account on behalf of a child and continue to deposit into and manage the account until the child grows up. This means the child can have a savings pot to put towards their first car or a house deposit, for example.

Once the child turns 18, most providers will switch the account into an adult savings account unless instructed otherwise (this may also happen when the child turns 16 or 21, depending on the provider).

When the child reaches a certain age, often around seven years old, the adult may also be able to transfer the account to the child’s name so the child has control of their account sooner.

Alternatively, there are accounts designed for older children and teenagers that they can open and manage themselves. This can help them to learn money management skills and get into the habit of saving from an early age.

Types of junior savings account

There are many children’s savings accounts to choose from, depending on your preferences and the age of the child. For example, a parent looking to open a savings account for their baby will have different requirements than a teenager who wants to open and manage an account themselves.

Most children’s savings accounts are easy access, or instant access, accounts. This means you can add to and withdraw from your savings as you wish, although some providers may set some restrictions on how much you can withdraw, for example.

These accounts may be suitable for children who want somewhere to deposit some of their Christmas or birthday money to save up for a more expensive purchase, for example.

Some of these accounts come with a debit card to allow the child to spend and withdraw from their savings.

Alternatively, there are also regular savings accounts for children. These typically pay a higher rate than easy access accounts, but they come with more terms and conditions and you usually need to deposit a minimum sum each month.

It may also be possible to open a fixed-rate bond on behalf of a child. These lock away access to your money in return for paying a guaranteed rate of interest.

Children’s savings accounts vs standard savings accounts

In many ways, a savings account for children is the same as a standard savings account.

Many standard savings accounts are only available to those aged 18 or over, so children’s savings accounts are simply a way for under-18s to build up their own savings pot.

While adults can open and manage their own savings accounts, young children need a parent, guardian or other relative to open and manage a savings account on their behalf until they are older.

As with standard savings accounts, money deposited in a children’s savings account is protected under the Financial Services Compensation Scheme (FSCS). This protects up to £85,000 held with each provider(s) under one banking licence.

The top children’s savings accounts may pay higher rates than standard adult savings accounts, but this isn’t guaranteed.

How much can you pay into a children’s savings account?

Many providers set a maximum balance that you can hold in a child’s savings account, but this could range from tens of thousands of pounds up to one million pounds.

Easy access children’s savings typically don’t restrict deposits into the account. However, with a regular savings account, you need to deposit a set sum into the account every month, as specified in the terms and conditions.

Do children pay tax on their savings?

Children are liable to pay tax and have the same personal allowance as adults. However, realistically, most children will never go over their allowance and won’t need to pay tax on their savings interest.

It’s worth noting that parents adding to their children’s savings could inadvertently end up liable to pay tax. If money that a parent has given a child earns more than £100 a year in interest, they will need to pay tax on that interest (if they have exceeded their own Personal Savings Allowance). This £100 limit applies to an individual parent and doesn’t apply to grandparents or any other relatives.

If you’re concerned about tax and your child’s savings, you may want to consider a Junior ISA which allows you to deposit up to £9,000 per year tax-free.

How can you open a children’s savings account?

Banks and building societies are popular options for children’s savings accounts, but there are other providers you can consider too.

Once you’ve chosen an account and checked that you meet the eligibility criteria (including any age limits for the child), you can follow the necessary steps to open it.

Note that some providers only allow you to open a children’s savings account by visiting a branch or by applying by post, for example. However, there are online options available if you prefer.

Parents and guardians can open a savings account on behalf of a child, and some providers may allow grandparents and other relatives to open an account too. The adult will usually need to bring some form of identification for themselves and the child, such as the child’s birth certificate.

Alternatively, if they’re old enough, a child may be able to open a savings account themselves, although they may still need to have an adult signatory.

Many children’s savings accounts only require a small deposit, such as £1, on opening.

Make sure you check the small print of a child’s savings account before opening to ensure it’s the best account for you and your child’s requirements.

Children's savings accounts FAQs

Can grandparents open a child savings account?

This may vary between providers, but some will allow grandparents to open a savings account on behalf of their grandchild.

What happens when the child reaches adulthood?

Once a child turns 18 (or 16 or 21 in some cases), their children’s savings account will usually switch to a standard adult’s account. At this point, the child will have control of this account and be able to use the money as they choose.

Can one savings account be used for two children?

You typically can’t open one savings account for two or more children. Most providers only allow one child to be named on a savings account, so you will need to open an account for each child if you want them both to have savings.

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Rhiannon Philps

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