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What are children’s savings accounts?

Children’s savings accounts are specifically designed to offer a place where you can save for your child’s future, or as a place where your child can save when they’re old enough to do so. Such accounts come in a variety of formats, much like adult savings accounts. View today's best rates below or read our children's savings accounts guide to learn more. 

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Best Children's Savings Account Rates

  • Coventry BS Logo
    Coventry BS Junior Cash ISA (1) FSCS logo
    FSCS logo
    AER
    3.60%
    Account Type
    Cash Junior ISA
    Notice / Term
    Age 18
    Interest Paid
    Yearly
    Opening Account
    Not Available Online Available At Branch Available By Mail Available By Telephone Not Available By Mobile
    Managing Account
    Not Available Online Available At Branch Available By Mail Available By Telephone Not Available By Mobile
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 3.60% paid at £1
    AER 3.60% paid at £1
    Rate Type Variable Rate
    Interest Paid Yearly
    Interest payment Interest must be compounded
    Min Opening Amount £1
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account

    Information

    Min Age 0
    Max Age 17
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfer Out Penalty Details -
    Transfers In - Cash JISAs
    Transfers In - Stocks & Shares JISAs
    Transfers In - Child Trust Fund
    Transfer Notes -
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Danske Bank Logo
    Danske Bank Junior Cash ISA FSCS logo
    FSCS logo
    AER
    3.45%
    Account Type
    Cash Junior ISA
    Notice / Term
    Age 18
    Interest Paid
    Yearly
    Opening Account
    Not Available Online Available At Branch Not Available By Mail Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Available At Branch Not Available By Mail Available By Telephone Available By Mobile
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 3.45% paid at £25
    AER 3.45% paid at £25
    Rate Type Variable Rate
    Interest Paid Yearly
    Interest payment Interest must be compounded
    Min Opening Amount £25
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account

    Information

    Min Age 0
    Max Age 17
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfer Out Penalty Details -
    Transfers In - Cash JISAs
    Transfers In - Stocks & Shares JISAs
    Transfers In - Child Trust Fund
    Transfer Notes -
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Darlington BS Logo
    Darlington BS Junior Cash ISA FSCS logo
    FSCS logo
    AER
    3.25%
    Account Type
    Cash Junior ISA
    Notice / Term
    Age 18
    Interest Paid
    Yearly
    Opening Account
    Not Available Online Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Not Available Online Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 3.25% paid at £1
    AER 3.25% paid at £1
    Rate Type Variable Rate
    Interest Paid Yearly
    Interest payment Interest must be compounded
    Min Opening Amount £1
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account

    Information

    Min Age 0
    Max Age 15
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfer Out Penalty Details -
    Transfers In - Cash JISAs
    Transfers In - Stocks & Shares JISAs
    Transfers In - Child Trust Fund
    Transfer Notes -
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • National Savings & Investments Logo
    National Savings & Investments Junior ISA Depositor Protection logo
    Depositor Protection logo
    AER
    3.25%
    Account Type
    Cash Junior ISA
    Notice / Term
    Age 18
    Interest Paid
    Yearly
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 3.25% paid at £1
    AER 3.25% paid at £1
    Rate Type Variable Rate
    Interest Paid Yearly
    Interest payment Interest must be compounded
    Min Opening Amount £1
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed

    Information

    Min Age 0
    Max Age 17
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfer Out Penalty Details -
    Transfers In - Cash JISAs
    Transfers In - Stocks & Shares JISAs
    Transfers In - Child Trust Fund
    Transfer Notes -
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Santander Logo
    Santander 123 Junior ISA FSCS logo
    FSCS logo
    AER
    3.25%
    Account Type
    Cash Junior ISA
    Notice / Term
    Age 18
    Interest Paid
    Yearly
    Opening Account
    Not Available Online Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Available At Branch Not Available By Mail Available By Telephone Available By Mobile
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 3.25% paid at £1
    AER 3.25% paid at £1
    Rate Type Variable Rate
    Interest Paid Yearly
    Interest payment Interest must be compounded
    Min Opening Amount £0
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account

    Information

    Min Age 0
    Max Age 17
    Taxation
    Interest is paid tax free

    Opening Restrictions

    Available to 123 World or Select Customers

    ISA Information

    Transfer Out Penalty Details -
    Transfers In - Cash JISAs
    Transfers In - Stocks & Shares JISAs
    Transfers In - Child Trust Fund
    Transfer Notes -
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • TSB Logo
    TSB Junior Cash ISA FSCS logo
    FSCS logo
    AER
    3.25%
    Account Type
    Cash Junior ISA
    Notice / Term
    Age 18
    Interest Paid
    Yearly
    Opening Account
    Not Available Online Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Not Available Online Available At Branch Not Available By Mail Available By Telephone Not Available By Mobile
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 3.25% paid at £1
    AER 3.25% paid at £1
    Rate Type Variable Rate
    Interest Paid Yearly
    Interest payment Interest must be compounded
    Min Opening Amount £1
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account

    Information

    Min Age 0
    Max Age 17
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfer Out Penalty Details -
    Transfers In - Cash JISAs
    Transfers In - Stocks & Shares JISAs
    Transfers In - Child Trust Fund
    Transfer Notes -
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • Tesco Bank Logo
    Tesco Bank Junior Cash ISA FSCS logo
    FSCS logo
    AER
    3.15%
    Account Type
    Cash Junior ISA
    Notice / Term
    Age 18
    Interest Paid
    Anniversary
    Opening Account
    Available Online Not Available At Branch Not Available By Mail Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Not Available At Branch Not Available By Mail Available By Telephone Available By Mobile
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 3.15% paid at £1
    AER 3.15% paid at £1
    Rate Type Variable Rate
    Interest Paid Anniversary
    Interest payment Interest must be compounded
    Min Opening Amount £1
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed
    At the end of the fixed term
    Your provider will write to you before the account matures. If you don’t give them any instructions, the money in the account will be paid into a variable rate account

    Information

    Min Age 0
    Max Age 17
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfer Out Penalty Details -
    Transfers In - Cash JISAs
    Transfers In - Stocks & Shares JISAs
    Transfers In - Child Trust Fund
    Transfer Notes -
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • The Melton BS Logo
    The Melton BS Wild Ones Young Savers FSCS logo
    FSCS logo
    AER
    3.04%
    Account Type
    Childrens
    Notice / Term
    30 Day
    Interest Paid
    Monthly
    Opening Account
    Not Available Online Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Not Available Online Available At Branch Available By Mail Not Available By Telephone Not Available By Mobile
    Rates
    Conditions
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 3.00% paid at £5
    AER 3.04% paid at £5
    Interest Paid Monthly
    Interest payment Interest must be compounded
    Min Opening Amount £5
    Max Investment £5,000
    Introductory bonus N/A

    Conditions

    Number of Permitted Withdrawals N/A
    Withdrawal Penalty N/A
    Minimum Number of Payments N/A
    Missed Payment Penalty N/A
    Regular Savings
    Min Monthly Deposit N/A
    Max Monthly Deposit N/A

    Information

    Min Age 0
    Max Age 15
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    Existing Customers (for 5 years or more.) and/or Locals (Leicestershire, Nottinghamshire, Lincolnshire or Rutland.)

    Additional Information

    N/A
  • Halifax Logo
    Halifax Junior Cash ISA FSCS logo
    FSCS logo
    AER
    3.00%
    Account Type
    Cash Junior ISA
    Notice / Term
    Age 18
    Interest Paid
    Yearly
    Opening Account
    Available Online Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Not Available Online Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Rates
    Access
    Information
    Opening Restrictions
    ISA Information
    Additional Information

    Rates

    Rate 3.00% paid at £1
    AER 3.00% paid at £1
    Rate Type Variable Rate
    Interest Paid Yearly
    Interest payment Interest must be compounded
    Min Opening Amount £1
    Max Investment £0
    Introductory bonus N/A

    Access

    Withdrawals Allowed
    Early Access Allowed
    Access Note
    N/A
    Further Additions Allowed

    Information

    Min Age 0
    Max Age 17
    Taxation
    Interest is paid tax free

    Opening Restrictions

    N/A

    ISA Information

    Transfer Out Penalty Details -
    Transfers In - Cash JISAs
    Transfers In - Stocks & Shares JISAs
    Transfers In - Child Trust Fund
    Transfer Notes -
    Split ISA Allowance Between Different ISAs With Same Provider

    Additional Information

    N/A
  • HSBC Logo
    HSBC MySavings FSCS logo
    FSCS logo
    AER
    3.00%
    Account Type
    Childrens
    Notice / Term
    Instant
    Interest Paid
    Monthly
    Opening Account
    Not Available Online Available At Branch Not Available By Mail Not Available By Telephone Not Available By Mobile
    Managing Account
    Available Online Available At Branch Not Available By Mail Available By Telephone Available By Mobile
    Rates
    Conditions
    Information
    Opening Restrictions
    Additional Information

    Rates

    Rate 2.96% paid at £10, 0.75% paid at £3001 on portion of balance
    AER 3.00% paid at £10, 0.75% paid at £3001 on portion of balance
    Interest Paid Monthly
    Interest payment Interest must be compounded
    Min Opening Amount £10
    Max Investment £0
    Introductory bonus N/A

    Conditions

    Number of Permitted Withdrawals N/A
    Withdrawal Penalty N/A
    Minimum Number of Payments N/A
    Missed Payment Penalty N/A
    Regular Savings
    Min Monthly Deposit N/A
    Max Monthly Deposit N/A

    Information

    Min Age 7
    Max Age 17
    Taxation
    Interest is paid without tax being deducted, but may be taxable depending on your personal circumstances

    Opening Restrictions

    N/A

    Additional Information

    N/A

Select a Savings Category

Note

Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme up to a maximum level of protection of £85,000 per person per institution.

Disclaimer

All rates subject to change without notice. Please check all rates and terms before investing or borrowing

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Children’s savings accounts explained

Leanne Macardle

Leanne Macardle

Editor

At a glance

  • Children’s savings accounts are available in the same format as savings accounts for adults: easy access, fixed rate bonds and regular savings.
  • Starting to save earlier can benefit your child more in the long run due to compound interest.
  • Some accounts have minimum and maximum age restrictions.
  • Depending on when your child was born, they may be eligible for either a Child Trust Fund or a Junior ISA (though note that Child Trust Funds are no longer available to new savers).

Children’s savings accounts come in a variety of formats, much like with adult savings, with it possible to get fixed rate bonds, easy access and regular savings accounts that are all designed for children. (There are also Junior ISAs and Child Trust Funds if your child was born between 1.9.02 and 2.1.11, which are discussed elsewhere.)

This is to provide accounts that can meet both short and long-term goals. On the one hand, a grandparent might be looking to put money aside to help a child far in the future, such as helping them raise the deposit on a house or buying a car, in which case a fixed rate bond could be ideal – that way, a lump sum can be invested that can remain untouched for a number of years, though the money may need to be moved when the term of the initial bond concludes.

On the other hand, the child themselves may wish to deposit surplus birthday money in a suitable account until they see something that they wish to buy, in which case an easy access account or perhaps a regular saver would be ideal. Such accounts could also be a great way to get children into the habit of setting money aside and to teach them about the value of saving, particularly if they get to watch their pot grow through the magic of compounding.

Which children’s savings account should I choose?

The type of children’s savings account you choose will depend on how much access you want to the funds within the account.

Easy access children’s savings

An easy access savings account often offers lower rates than fixed-rate versions, but they usually allow instant access to the money within the account. These types of accounts are often chosen as a short-term savings option.

Fixed rate children's savings 

Fixed-rate long term children’s savings accounts normally offer higher rates but, in return, savers often cannot access the money for a long period of time, often not until the child reaches 18 years of age. This type of account is often used by parents and close family members wanting to create a large savings fund to help towards the child’s future, such as paying towards the deposit of their first home.

How can I open a children’s savings account?

This all depends on the age of your child. Some accounts will allow you to open an account for your child from birth, while others may have an older minimum age requirement, and yet more allow the child themselves to open the account when they reach a certain age. Similarly, not all children’s savings accounts will run until your child is 16 or 18 – some end when a child turns 11, or 13 for instance. Essentially, it all comes down to the individual account, so you need to check the features and small print of each potential deal to see if it works for you and your child’s circumstances.

Do I need to worry about taxation?

Most children don’t pay tax on interest they earn from their savings, as it’s highly unlikely that they’ll earn enough interest to breach their personal tax allowance (which is £12,500 for the 2019/20 tax year).

However, parents may have to pay tax instead, but again it isn’t that likely. If a child earns more than £100 in interest on money given to them by a parent or step-parent, there will be tax for you to pay – unless that money is in an old Child Trust Fund or Junior ISA – as it’s taxed as if it was the parent’s own interest. This limit doesn’t apply to cash given by grandparents or other family members, however.

How much can I pay into children savings account?

The amount of money you can pay into a children’s savings account will depend on the type of account you choose. Some accounts will have a maximum investment level, which will be individual to each account, and once you reach this maximum, no further money will be allowed to be deposited. Although, many accounts do not have a maximum investment and, as such, you can deposit as much as you choose into the account.

If you choose a regular savings account, depending on the terms of the account, you may be required to deposit a specific amount into the account each month. As well as this, with a JISA it is important to remember there is a maximum amount of £4,368 that can be saved tax-free into account for the 2019/20 tax year.

Can I use one saving account for two children

Children’s savings accounts work much the same way as adult version and, as such, normally the savings account will be specific to the individual child. This means that if you want to save for more than one child the only option is to open multiple savings account for each individual child.

If you want to make sure that all interest can be earned tax-free, and specifically want to save for your child’s future, you may want to look to Junior ISAs. These allow you to save up to a certain amount each year – which for the 2019/20 tax year is £4,368 – without any tax liability, and your child won’t be able to access the funds until they turn 18. View today's best junior ISA rates.

Finding the best children’s savings rates

To find the best children’s savings account rates, simply use our savings search tool and you’ll be presented with a list of the top options that meet your needs. However, you may want to speak to your own (or your child’s) current account provider as well, as you’ll often find loyalty or linked children’s savings accounts that pay far higher rates of interest.

That said, don’t be afraid to look to lesser-known names, and bear in mind that it can often make sense to go for smaller mutuals. Building societies are often known for offering generous children’s savings accounts, and challenger banks are increasingly getting in on the action, too.

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