Compare Childrens Savings Accounts

Compare Children’s Savings Accounts

Opening a children’s savings account is a great way to save for the future, allowing you to put money aside for your child’s education, future events or even to have an amount to put towards a deposit for a house. While the interest rate might be low, if you plan on saving in the long term, you can still get a good return on your savings.

You can deposit a lump sum that will earn interest over time, or setup a standing order to deposit an amount every month, building up your child’s savings over the course of many years until they’re old enough to need additional finances of their own.

What is a children’s savings account?

A children’s savings account is an account where you can put money aside for a child so they can use it when they are much older for education, getting on the property ladder or another significant purchase they may require financial support for.

It can either be operated by parents to put money aside over a number of years, or children over the age of 7 can actually operate the account themselves, putting money aside and learning how to manage money.

There is also the option of having an easy access (or instant access) children’s account, where you can withdraw at any time without having to pay a fee. Alternatively, you can get a regular children’s savings account, where you might not be able to withdraw as easily but will get a higher interest rate.

How does a children’s savings account work?

• Deposit a lump sum or make a standing order each month
• Earn interest from the amount every month
• Make a withdrawal at any time with an easy access or instant access account
• Keep up deposits for regular savings accounts
• Children over the age of 7 can operate the account

Like any other savings account, a children’s savings account allows you to deposit funds and earn interest on the amount. Whilst the interest rate is likely to be low, you will often find that this type of savings account will be taken out over many months or years, so can accumulate interest in the long term.

You can usually choose to pay into the account on your child’s behalf, giving them access when they are of a certain age so they can withdraw the funds themselves. However, you can also give children access from the age of 7, allowing them to manage the account themselves. This can be a good way to teach your child how to manage money for the future.

How to open a children’s savings account

Getting a children’s savings account is just as straightforward as opening a standard savings account, especially as you can usually apply online. Make sure you have all the relevant personal details for yourself and your child to hand and double check those details before you submit your application. Depending on the provider, you may also be credit checked.

Take a look at the following details when comparing children’s savings accounts:

• Type of children’s savings account – you can choose an easy/instant access account or a regular saver account, depending on if you want to withdraw easily. There are also investment ISA’s available, known as a ‘Junior ISA’, however capital is at risk and ISA rules apply.
• Interest rate – this will indicate how much you can expect to earn on top of your savings. Remember, a regular savings account will often have a better interest rate
• Withdrawal terms – whether you can withdraw easily without having to pay fees
• Minimum and maximum deposit amounts – you can usually deposit anything from £1, but there might also be a maximum per month as well

Once you have looked over these details, take a look at our comparison tables to find the best children’s savings account for you.