Best prepaid travel cards for kids
How children can spend safely abroad
With fewer using cash to spend abroad, it’s tougher to give children spending money. Kids’ overseas prepaid cards let you, or them, load up money to spend (many also let you set spending limits and monitor via apps too). Better still, some of them offer near-perfect exchange rates on the day you spend.
Top cards for under-18s to use abroad
What is a kids prepaid travel card?
Prepaid cards are debit cards linked to apps. Parents open the account, load money onto the card, then hand it to their children to use like a regular debit card – to spend in shops, online, withdraw cash, or check balances at ATMs.
Children won’t be able to spend more than the balance on the card and the card can be frozen or refunded by parents via the app.
Because of this, they can be a decent alternative to travel cash, as some come with with near-perfect foreign exchange rates. But they often come with a fee, so if the extra features don't appeal, good old-fashioned cash could be the cheaper option.
Some cards offer additional features that allow parents to monitor and control how their children spend cash – we outline the individual features of each in our best buys below. Broadly, prepaid cards will let you:
Set spending limits. This means your child will only be able to spend a set amount each month or week. You can also typically limit where the child can spend as well (for example, only online or in certain shops).
Set ATM withdrawal restrictions. This has similar benefits as setting spending limits, and also acts as a safeguarding tool in case the card is lost or stolen.
Monitor spending. Parents will usually be able to use their linked app to see transactions, to keep an eye on their child's spending.
Freeze or close the card. If something goes wrong, such as the card being stolen, you will be able to freeze your child's account so the thief can't spend on the card.
Prepaid cards vs children's bank accounts
We include both in our best buys, but the main difference is how much control parents have.
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With prepaid cards, it's the parent who opens and manages the account through an app. Children can still spend with the card, but they can't set up Direct Debits – and they can’t spend more than what’s loaded onto the card. Most also come with a variety of spending controls.
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With children's bank accounts, the child usually manages the account themselves – they can set up Direct Debits and use a debit card to spend. However, there usually aren't any spending controls.
Here's a larger comparison of the two:
Children's prepaid travel card need-to-knows
If you think a prepaid travel card is right for your child, here are our key need-to-knows to consider before getting one.
Sadly, not all of these cards come free. These are the fees to keep an eye out for:
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Monthly or annual fee. After any free trial, it's typically up to £36/year.
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ATM fees. Some cards may charge around 50p/withdrawal in the UK.
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Overseas fees. While there are usually no charges for spending in the UK, costs can mount up abroad.
We list below the cards with near-perfect exchange fees.
It's therefore important to cancel the card to avoid charges if your child stops using it. While these cards are for children, many won't actually stop working once your child hits 18, so you'll need to actively cancel it to stop continued fees.
It’s important to know that money held on a prepaid card isn’t protected in the same way as cash in a bank or savings account.
Money on prepaid cards is classed as 'electronic money', and all prepaid card providers have to hold your cash in a bank account ring-fenced from their operating cash. Should the card issuer go bust, your money would be protected as it'd be in a separate account.
But there’s a crucial catch: if the bank or building society holding that ring-fenced money goes under, your cash isn’t protected. That’s because it doesn’t count as a deposit – so it’s not covered by the Financial Services Compensation Scheme (FSCS).
As this is important, we've full details on how your cash is protected with each of our top picks.
If the card goes missing, don’t worry – unlike cash, you can quickly 'lock' or deactivate it in the app or by calling the card provider. The sooner it’s done, the safer your money.
If the card is used before it’s locked, the money spent might not be protected. But if you believe there’s been fraudulent activity, contact the card company straight away – they might be able to recover the funds under their agreement with Mastercard or Visa.
If you're not sure the card’s actually lost – maybe it's just hiding under the sofa or your child has been a bit cheeky and gone on a spending spree – you can freeze the card temporarily. That stops any spending until you decide it's OK to use again.
Most cards come paired with a smartphone app which allows you and your child to see what and where money is spent. Some of these cards' providers will send you text messages or app notifications whenever your child uses the card – meaning you can keep track of their spending.
A second perk for parents is that you can also control how your child uses the card. For example, you can temporarily stop the card, you can set spending limits and monthly allowances, and in some cases you can restrict your child to using the card at ATMs, or in shops or online only.
There are some restrictions though – for example, your child won't be able to set up Direct Debits (with children's bank accounts you can) and obviously the card is blocked in certain inappropriate places such as gambling sites, casinos, off-licences and pubs.
When travelling, it's pretty common for a cash machine or retailer to ask if you want to be charged in pounds instead of the local currency. This is called dynamic currency conversion. In general, you should almost always opt to be charged in the local currency rather than pounds, as exchange rates can often be appalling.
When we selected our top picks for this guide, part of our criteria was that they should have top exchange rates and minimal fees. So, with any card from this guide, always opt to pay in the local currency.
Even if you're using a normal card, as you've no idea of the relative exchange rates, it's usually best to stick with paying in the foreign currency.
For a great example of this, read Martin's blog.
These cards usually charge monthly fees & some will charge per transaction
Your money should be protected if the prepaid card provider goes bust
You can lock the card in the app if it's lost or stolen
You'll be able to control how much cash your child can spend & see where they're spending it via an app
If offered a choice of paying in pounds or the local currency, always opt for the local currency
Top cards for under-18s to use abroad
We've compared the top cards and children's bank accounts and listed those with the best rates and lowest fees. You can also take a look at the best you'd get in holiday cash by using our TravelMoneyMax comparison tool.
With all the options below, you transfer pounds onto the cards and you'll get the exchange rate on the day you (or your children) spend.
Our top-three picks all offer fee-free spending abroad with no limits – which is best depends on whether you'd prefer a prepaid card, a children's bank account or an account linked to an adult bank account, and whether you value using ATMs.
HyperJar's* prepaid-card has no monthly fee but there's an initial £4.99 card delivery fee. It can't be used at ATMs, even in the UK, plus load or transfer fees can apply, depending on how you use the card. You get 10 free loads of £10+ and just one load under £10 each month, plus you can also only transfer out of the HyperJar account four times per month – it'll cost £1 each time you exceed any of these limits.
Nationwide's kids' bank account is free to open and comes with a contactless debit card, though it doesn't have monitoring facilities like the prepaid cards do. It also gives access to an easy-access savings account which pays a decent 5% on up to £5,000.
Starling Kite is a feature of Starling's free adult current account (so you'll need to have or be willing to open an account yourself). Your child gets a debit card and can view their balance through an app. You can set daily spending limits and track your child's spending.
Alternatively, other options with fee-free spending abroad include GoHenry's* £3.99/month prepaid card (use our link with code AFFMSE25 for two months' free and £5 cashback) or Revolut's <18* account linked to its adult current account.
KEY FEATURES | |||
|---|---|---|---|
Is there a monthly fee? | No, but £4.99 card delivery fee | No | No (but you need a free adult Starling current account to get Kite) |
Are there other fees? | Yes, the first ten £10+ top-ups per month are free, but it's £1 after that (one free monthly top-up if it's less than £10, then £1 per top-up after). Four free transfers out per month, then £1 per transfer. | No | No |
Are there spending controls? | Yes, you can put money in different 'jars' and set spending limits for each jar and link retailers to specific jars. | No | Yes, you can set daily spending limits, control where your child spends and track spending |
Age restrictions to get the card? | 6 to 17 years | 11 to 17 years | 6 to 15 years |
FSCS protection? | No, but protected by | Yes | Yes |
Fee-free ATM withdrawals? (1) | Can't withdraw from ATMs | Yes | Yes |
Fee-free spending? | Yes | Yes | Yes |
(1) These cards won't charge you, but ATMs may.
Next-best kids prepaid cards
Both cards are fee-free to spend on abroad, though Revolut has ATM fees/limits.
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The GoHenry prepaid card* costs £3.99/mth (though you can get two months free + £5 cashback via our link if you use code AFFMSE25 when you sign up, so you could use it for the holiday & then cancel). The first monthly top up is free but it'll cost 50p per additional top up.
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Existing Revolut customers can open one Revolut <18* account for free, though there's a £4.99 card delivery fee. It's free to spend on the card up to £500/month (0.5% fee above) and you can withdraw up to £100/month from ATMs without paying any fees (2% fee above).
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