Top children's savings accounts
Teach your kids to save at up to 5% interest
Some children's savings accounts offer comparable or even better rates than adult accounts. But many kids have cash in accounts that pay next to nothing in interest, depriving them not only of the cash that generates, but also of the lesson that you can make your money work for you. We've top pick accounts for kids below...
Top-pick kids' savings
-
Easy access: deposit lump sums
Santander: FREE £50 + up to 3% interest
Nationwide: 5% on up to £5,000
Kent Reliance: 4.18% on up to £25k -
Regular savers: save small amounts monthly
Principality Building Society: 4% fixed for three years
Skipton Building Society: 4% variable for a year
Martin Lewis: Consider investing instead of saving
As a nation we're too risk averse, which is why my biggest push is for parents or grandparents to consider investing for your child, as often money put away for kids is a prime candidate for investment. Over the long term, investing will hopefully substantially outperform saving, so your kids would have a far bigger nest egg.
And no, I don't mean Premium Bonds, which often underperform for children, as most children have small amounts of savings and aren't taxpayers. Try our Premium Bonds Probability Calculator to see your chances of winning.
Key need-to-knows, including savings tips for kids
The simple money management lesson for younger children is obvious – put your cash in the bank and it'll earn interest and grow. But as they get older there's another lesson to be learned – a bank's job is to make money from you, our job is to try to keep our cash.
So here are some top tips for helping kids learn and understand about saving, plus everything else you need to know about kids' savings.
1. Consider a junior ISA if you want to invest rather than save, want to lock savings away, or if your kid is a high earner
As Martin mentioned above, over the long term, investing will hopefully substantially out perform savings, so do consider a {junior stocks (investment) ISA}.
If you want traditional savings, junior cash ISAs are useful if tax is likely to be an issue (see below), or you want the money locked away until the child turns 18. At that point, it becomes an adult ISA, so remains tax-free. But remember, the money belongs to the child and can’t normally be accessed before 18. Ordinary children’s savings accounts usually give you more flexibility - our top picks are below.
Child born between 1 September 2002 and 2 January 2011? See our Child Trust Fund guide.
2. Children’s interest can be taxed – though most won’t pay any
There's a common myth that children don't pay tax. But they're actually taxed in exactly the same way as adults. However, most children don't have jobs or earned income to reach the taxable threshold.
So for the 2026/27 tax year, if they've no other income they can earn up to £18,570 in savings interest without paying tax on it. That's the £12,570 personal allowance + £5,000 starting savings allowance + the £1,000 personal savings allowance.
There’s an important exception...
If money is given by a parent or step-parent (not grandparents or others) and the interest earned on it is over £100/year from non-ISA savings, the whole thing is taxed like it's the parent's income.
The £100 allowance is on a 'per parent' basis, rather than a 'per child' basis. The aim is to stop parents using their kids' tax-free allowance for an extra allowance.
The parents' personal savings allowances are also taken into account. So if the parent is within their personal savings allowance, the child's interest would be tax-free.
3. You can save in your child's name – but be aware of the tax implications
Children’s accounts can pay better rates, and you can have one for pocket money and another for larger gifts. But money in their name is legally theirs.
For parent or step-parent gifts outside an ISA, the £100-a-year interest rule above applies. A junior ISA avoids this, as the interest is always tax-free.
With many ordinary children’s accounts, an adult can manage the money until the child is 16, though withdrawals should be for the child’s benefit.
4. Savings tip: explain why a bank beats a piggybank
Here's a handy explanation you can use with your kids: "Put your cash in a piggybank and it sits there. Put it in a bank or building society and it pays you interest for looking after it.
The higher the interest rate and the longer you keep your savings in the bank or building society, the more they pay you. If the interest is 5%, they'll pay you 5p a year for every £1 you save with them."
For info on children's bank accounts, read our guide to prepaid cards and bank accounts for children and teens.
5. Savings tip: pick the account together, but get your child to monitor the rate
Compare the top accounts together and explain the pros and cons of each (if you're unsure, see Interest rates for beginners). Better still, go to your local bank or building society, get your child to ask for an account there and compare its deal with the best here.
Don’t be swayed by cute freebies. They can be fun, but often come with poorer interest. Pick the best rate first; if you want a freebie too, consider opening a separate account with only the minimum deposit needed.
With an easy-access or variable-rate account, make your child responsible for checking the rate each month. If it drops too far, move the money.
6. Savings tip: explain that bank savings are protected
Although a piggybank is kept at home where you can see it, it can get lost or stolen (don't say that if it'll scare them). Yet money in the bank earns interest and if it’s with a UK-regulated provider (as all accounts listed in this guide are), up to £120,000 per person is protected by the Government-backed FSCS per financial institution. See our Safe savings guide for more info.
7. Savings tip: agree how much is for saving and for spending
One easy trick is to defer an element of pocket money to show the extra reward from saving. For example, if their pocket money is £3, give them half for spending and half for saving. Then tell them for every pound they save, you'll give them an extra one at the end of the year as a reward (if you can afford it, of course).
For more tips, see Martin's blog: Give pocket money as pay.
Top children's easy-access accounts
Easy-access accounts are a great way to save, as they allow you to add and withdraw money at will. We've picked accounts that let your kids save a decent lump sum in them.
Kids' easy-access accounts – what we'd go for
Easy-access accounts are best for saving bigger sums – though some of the best rates are on kids' current accounts (which typically come with a debit card).
New. FREE £50 for putting £50+ in a top-pick kid's bank account. 13 to 17-year olds who open a new Santander Mini* account online (you can't already have one) and deposit £50+ within 31 days will get a FREE £50 (paid within 60 days). The account's one of our top picks anyway, comes with a debit card & pays up to 3% interest – 1% on up to £1,000, 2% on £1,000-£1,500 and 3% on £1,500-£2,000.
Get 5% interest via top children's bank account. Nationwide's FlexOne Saver pays the top rate of 5% on up £5,000 and you don't need to bank with Nationwide to get it – though you'll need to open the FlexOne current account for your child first. You can apply online if the child is aged 13 to 17, though 11 and 12-year-olds will need to apply in branch with their parents/guardians.
Top children's savings accounts. For accounts that can be opened without needing a current account, top is Kent Reliance at 4.18% on up to £25,000 (children aged zero to 17 can apply via post or in branch, though adults will need to open on behalf of under 7s).
Or, for accounts openable online, there's Lloyds Bank or Bank of Scotland, both at 2.25% on up to £5,000. Though these can only be opened by a parent or guardian on behalf of children aged 0 to 15, who must be (or be willing to become) existing personal current or savings account customers.
Account and interest rate (AER variable) | Gives debit card? | Min/max age and how to open |
|---|---|---|
Top children's easy-access accounts | ||
Nationwide FlexOne Saver 5% on £1 to £5,000 | Yes | 11-17: Parent or guardian must apply for under-13s in branch. Older children can apply online. Yet all can manage online, via app or in branch. |
4.18% on £10 to £25,000 | No | 0-17: Open and manage via post or in branch. Parent or guardian must apply for under-7s. Open and manage via post or in branch. |
3.75% on £10 to £3,000 | Yes, from age 11 when MyAccount current account is opened automatically | 7-17: Parent or guardian must apply in branch (or online if they bank with HSBC). Until age 11 child must deposit and withdraw in branch. After they can do it online or app via its MyAccount current account. |
3.65% on up to £20,000 | No | 0-17: Apply in branch or by post. Adult aged 16+ must open on behalf of under-12s. |
3.6% on £3,000 to £25,000 | No | 0-17: Apply in branch or by post. Close family members must open on behalf of under-8s. |
3.6% on £10 to £10,000 | No | 0-17: Apply in branch or by post. Parent/guardian/grandparent must open on behalf of under-13s. |
3.55% on £1 to £100,000 | No | 0-17: Apply in branch or by post. Adults aged 18 or over must open on behalf of under-16s |
Top online accounts. Lower rates than above, but all can open online. | ||
Lloyds Bank / Bank of Scotland 2.25% on £1 to £5k | No | 0-15: You can only open if you are a parent or guardian with a current or savings account with Lloyds/BoS. Only the parent can open it and manage online. |
Santander 123 Mini incl. FREE £50* 1% if you've £1 to £999.99 | Yes | 0-12: Parent or guardian must apply on behalf of child in branch and have Santander current account. Parent manage it online, via app, phone or in branch until their child is 11. 13-17: Only child can apply, must apply online. New. FREE £50 for 13-17 year olds. Just open an account and save £50+ within 31 days. £50 will then be paid into the account within 60 days. You can't have another Santander Mini account. |
Want to know how much you'll earn in easy-access savings? Find out with our Savings Calculator. Simply plug in the rate, how much you'll save and how long for and it'll tell you how much you'll earn.
Top kids' regular savings accounts
These accounts let you save small amounts each month, usually for a fixed term of a year. They often pay high rates of interest, but tend to have withdrawal restrictions. For a more detailed explanation of how the interest works and the pros and cons, read our full adults' regular savings guide. Or take a look at the top payers below.
Kids' regular savers – what we'd go for
These accounts let you save smaller amounts every month. Two accounts pay the top rate at 4% and can only be opened via post or in branch. Which is best for your child will depend on how long they want to save for and if they'll need access to their cash...
Principality Building Society pays 4% fixed for three years on up to £150 a month and you can't make withdrawals.
Skipton Building Society pays 4% variable for 12 months on up to £100 a month, but here you can withdraw whenever you like.
Provider | Interest rate (AER) | Min/max monthly deposit (1) | Min/max age to open | How to open | Withdrawals allowed? |
|---|---|---|---|---|---|
4% fixed for three years | £1/£150 | 0/15 | Post/ branch (adults aged 18 or over must open on behalf of under-14s) | No, but can close early without penalty | |
4% variable for 12 months | £1/£100 | 12/17 | Post/ branch | Yes | |
3.95% variable for 12 months | £1/£100 (must have min £5 in account to get interest) | 0/17 | Post/ branch (adults aged 18 or over must open on behalf of under-13s) | Yes |
(1) All accounts let you skip months with no penalty
Want to know how much you'll earn in regular savings? Find out with our Savings Calculator. Simply plug in the rate, how much you'll save and how long for and it'll tell you how much you'll earn.
Children's savings FAQ
Can my child control the savings account?
This usually depends on the age of the child and how you've opened the account. Typically, if your child is under eight the account will be held in trust by the adult(s) who opened it. However, some accounts allow you to remain a signatory until your child is 16.
Many accounts have terms and conditions stating withdrawn money must be used "for the benefit of the child", but of course, this covers a wide variety of definitions.
Once your child is old enough, they will also be able to manage the account, online, in branch and via ATMs – depending on the features the account offers. See our best-buy tables above to compare the best rates.
Who can open children's savings accounts?
Until a certain age (this varies per provider), parents, guardians and often grandparents can open a children’s savings account on behalf of a child (referred to as 'in trust').
You'll usually need permission from the child's parents to do so, which can vary from a checkbox to say you've asked to the account details being sent to them in the post.
Depending on the account and once the child is old enough, the account can usually be opened in their name without the signatory of an adult.
At what age can a child open and manage a children’s savings account?
Children under eight will need a signatory to open a savings account 'in trust'. After this age, they can usually open their own savings account, though the age will vary from account to account.
Can one account be used for two children?
Any money in a child's savings account will belong to the child named on the account, and most of these can't be opened in joint names.
So, while you could technically pool the money into one, it would formally belong to the one child named.
Confusingly, however, it’s sometimes possible to open more than one account for each child with the same bank or building society.
Will my child be able to get mobile banking?
Bigger banks often allow under-18s to use mobile banking, such as Nationwide and HSBC, via their apps. Children's bank accounts from smaller providers are usually managed by branch or by post.
How does the Financial Services Compensation Scheme protect my child's account?
The Financial Services Compensation Scheme (FSCS) protects up to £120,000 in total across ALL accounts your child may hold, whether that's in their name OR where they're the 'beneficial owner' (for example, if money's held on their behalf by an adult 'in trust').
If the money is saved in a Child Trust Fund or junior ISA, the FSCS compensation will have to be paid into another ISA, rather than elsewhere.
Share this guide?
