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Best children’s savings account

Best Children's Savings Account in the UK

Ready to start saving for your little one? Here’s our rundown of the best children’s savings account options in the UK.

It’s understandable to want to take the time to hunt out the best children’s savings account. Having a little extra to set aside is pretty hard to come by right now. While it’s only natural for any parent to want to help their child to start building some savings, it’s perhaps more important than ever to make sure we choose the right option.

In our guide to the best children’s savings account

What to consider when choosing the best children’s savings account

There are a few key considerations to having in mind when deciding on the best children’s savings account for your little one. Having these in mind will help you to pick the right option for your circumstances.

Interest rate
One of the key reasons for opening a children’s savings account is so that your child’s money can grow over time. Finding an account with a high interest rate will help that to happen.

Access and withdrawals
Why are you opening the account? Are you creating a pot of money that your child can dip into for treats every now again? Or is this going to be a nest egg that they don’t touch until they’re aged 18 or older? Depending on your answers, you will need to consider whether a savings account gives you easy access to the money and whether you’re penalised for making withdrawals.

Different types of savings accounts
There are different types of children’s savings accounts, including easy-access accounts, regular savings accounts and junior ISAs. You’ll need to consider the options and work out what’s best children’s savings account for how you and your child plan to save. We’ll discuss these various options in more detail below.

Your child’s earnings
Most kids don’t earn money… but some do. If you child has income, you’ll need to look at the tax implications of their savings.

Different types of kids’ savings accounts

There are different sorts of children’s savings account available and the right option for you and your child will depend on how you want to be able to save. Let’s look at some of the main options.

Children’s easy-access savings accounts

As the name suggests, these are accounts that make it easy to get your hands on the money in the savings account when you need it.

  • There’s usually a maximum amount you can save each year, which can be anything from £3,000 to £1 million depending on the account.
  • Greater flexibility may mean a slightly lower interest rate than for some of the other options.

Children’s regular savings accounts

These are accounts into which you commit to adding a small amount every month.

  • There’s usually a fixed term — typically 12 months — for which you agree to make savings.
  • You’ll usually have a maximum monthly deposit of around £100.
  • You might be penalised if you withdraw money or close the account early.

Children’s fixed-term savings accounts

Just like adult fixed-term savings accounts, these are accounts for which you can’t touch your savings for an agreed period of time.

  • These are a less popular option at the moment and there aren’t too many children’s fixed term savings accounts available.
  • You won’t be able to access or withdraw your money for the duration of the fixed term.
  • You’ll typically be offered a higher rate of interest for committing to the fixed term.

Junior ISAs

Junior ISAs are tax-free savings accounts that keep the money locked away until a child turns 18.

  • There’s usually a better option for most children. You may be able to get a similar rate of interest with greater flexibility to withdraw money using one of the options above.
  • There’s currently a tax-free savings limit of £9,000 per year for junior ISAs.
  • Junior ISAs are particularly well-suited to youngsters with a high income.
Best Children's Savings Accounts 2023

Finding the best children’s savings account for your child

Hopefully our guide to the different types of children’s savings accounts has helped to narrow down your search. We’ll now pick out some of the best children’s savings account options for each of the categories we’ve covered.

Please keep in mind that accounts, interest rates and terms are regularly adjusted by banks and buildings societies. The information below is correct at the time of writing and is for guidance only. Check directly with banks and building societies to confirm their current offers.

Best children’s easy-access savings accounts

The best children’s savings account if you’re saving a lump sum.

HSBC MySavings Children’s Savings Account

HSBC’s children’s savings account ticks a lot of boxes with a solid interest rate — the best among easy-access savings accounts — couple with a great degree of flexibility.

  • 5% interest
  • Open an account with £10 or more
  • Save up to £3,000 at 5% interest rate
  • Ages 7-17

Yorkshire Building Society One Day Account

Another strong, easy-access option, Yorkshire Building Society’s One Day Account offers a decent rate of interest and a higher maximum balance at that interest. The account is also available to a broad range of children and young adults.

  • 4.55% interest
  • Open an account with £10 or more
  • Save up to £1 million at 4.55% interest rate
  • Ages 0-21

Best children’s regular savings accounts

The best children’s savings account if you’re saving a small amount monthly.

Saffron Building Society Children’s Regular Saver Account

The highest rate of interest currently available for a children’s regular savings account or indeed any of the best children’s savings accounts we’ve come across. It’s also an account that offers more flexibility than many other regular savings accounts.

  • 5.8% interest
  • Minimum monthly deposit: £5
  • Maximum monthly deposit: £100
  • Withdrawals allowed
  • Ages 0-17

Halifax Kids’ Monthly Saver

Only a slightly lower rate of interest than that offered by Saffron. The Halifax Kids’ Monthly Saver comes with the additional advantage that you can open the account online (which is not the case with Saffron).

  • 5.5% interest
  • Minimum monthly deposit: £10
  • Maximum monthly deposit: £100
  • No withdrawals allowed but no penalties for closing early
  • Ages 0-15

Best children’s fixed-term savings accounts

The best children’s savings account for a guaranteed interest rate on a lump sum.

State Bank of India UK Jumbo Junior Fixed Deposit

With a good interest rate and a high maximum deposit figure of £100,000, this fixed-term account is well-suited to youngsters with large savings.

  • 5.5% interest fixed for 2 years
  • Minimum deposit: £1,000
  • Maximum deposit: £100,000
  • Must open Jumbo Junior Instant Access account to qualify
  • By post or in-branch only
  • Ages 0-15

Cambridge Building Society 3 Year Fixed Rate Children’s Bond

Although the rate of interest is lower than with the State Bank of India UK, this fixed-rate account with the Cambridge Building Society lets you lock in your rate for the next three years.

  • 4.5% interest fixed for 3 years
  • Minimum deposit: £1,000
  • Maximum deposit: £20,000
  • By post or in-branch only
  • Ages 0-15

Best junior ISA

The best children’s savings account for tax-free savings for high-earning youngsters.

Coventry Building Society Junior Cash ISA

The highest interest rate for a junior ISA is currently available from the Coventry Building Society. Although the rate of interest is lower than with the State Bank of India UK, this fixed-rate account with The Cambridge Building Society lets you lock in your rate for the next three years.

  • 4.95% interest
  • Minimum deposit: £1
  • Maximum annual deposit: £9,000
  • Transfers in allowed
  • Ages 0-18

Loughborough Building Society Junior ISA

At only a slightly lower interest rate, Loughborough Building Society is another contender for the best junior ISA. This won’t be suitable if you’re hoping to transfer in from a Child Trust Fund though.

  • 4.8% interest
  • Minimum deposit: £1
  • Maximum annual deposit: £9,000
  • Transfers in allowed (but not from Child Trust Funds)
  • Ages 0-18

Overall best children’s savings account

We’re going to give the HSBC MySavings account the nod as our overall best children’s savings account at the moment. Whether it’s the right account for you and your child will depend on your circumstances.

It’s our choice as the best children’s savings account because it offers the best interest rate among savings accounts that offer the flexibility to deposit and withdraw whenever needed. As such, we think it will be a great choice for a large proportion of young savers.

That concludes our round-up of the best children’s savings accounts in the UK at the moment. We’ll update the article regularly but please check with banks and building societies for their best offers when you’re ready to open an account for your child.

Children’s savings account FAQs

Can a child open their own savings account?

Yes, children aged 8 and over can open their own savings account. It’s never too early for them to start learning about finance, so this might actually be a good thing for them to do. Children under 8 will need a signatory to open a savings account ‘in trust’ on their behalf.

Can you open a children’s savings account online?

Yes, there are some online children’s savings accounts available. But most of the options require you to call into a branch to open an account. In general, the interest rate available for online savings account isn’t as generous as it is for some of the best children’s savings accounts available in branch.

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