Compare Children's Savings Accounts
Children's Savings Accounts
Opening a savings account is a great way to get your kids started in educating them on how to manage money. It can teach them how to save money and be financially responsible as they grow up.
Interest rates on kids accounts
Generally speaking, the interest rates offered on kids accounts is quite a bit higher than a regular adult savings account so it's worth shopping around to find the best rate available. It can be a useful opportunity to try and teach children how interest rates work and how they can earn money on their savings.
Those accounts that offer the highest interest rates will usually require you to transfer minimum monthly amounts into the child's account via a standing order. If a payment transfer is missed then it could result in you losing this higher rate.
Restrictions on opening a children's account
- To open an account for a child you need to be at least 18 years old and either be the parent or guardian (otherwise you need to get permission).
- Children in their teens may be contacted directly by the bank to inform them that they are holding their personal information. The bank should contact you beforehand to inform you of this.
- The minimum age restriction for a child to have a bank account is around 6 years old and the maximum is usually 17 years old. However, some financial providers may have different rules and require that children are over 10 years old before they can have an account.
Managing a kid's savings account
Accessing and managing the account differs between banks. Some accounts require an adult to authorise every transaction whilst others can be managed by the child directly via online or in branch. Some savings accounts may even issue a debit card for the child, as they get older.
Access to savings
The majority of accounts for children allow instant access to funds and allow you to withdraw and deposit funds at anytime without incurring charges.
Some accounts are designed specifically for parents to save on behalf of their child. These accounts often attract higher interest rates but are very restrictive on withdrawing the money (often by closure only). Money plus interest saved may be automatically transferred into your kids' own bank account after 12 months. You should read the specific terms for each product before opening any account.
Minimum Opening Deposit
The majority of kid's accounts can be opened with just £1 although some may require a slightly higher amount like £5 or £10 where a regular monthly transfer is required.