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Kids' Savings Accounts
Save for your child’s future and encourage younger ones to save with our range of accounts for kids and teens.
We’ve put together a list of useful articles and some of our most frequently asked questions around saving for a child.
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Account name |
Interest |
Minimum opening balance |
How long the account stays open for |
Withdrawals |
Find more information |
|---|---|---|---|---|---|
Account nameFor 11 to 15 year olds who want to save, spend and learn with parental oversight. As part of Money Smart, the child gets a savings account and a current account. |
Interest3.40% AER/3.35% gross on balances from £1 - £1,000. 1.45% AER/1.44% gross on any excess above £1,000. Interest on savings account only. Interest is variable and is paid after each month. |
Minimum opening balance£1 |
How long the account stays open forAfter the child’s 18th birthday, the savings account will change to an adult Instant Saver. The spending account will change to an adult Current Account. |
WithdrawalsUnlimited. |
Find more informationThe parent or legal guardian needs a Reward Current Account or Ultimate Reward Current Account to open this account. |
Account nameFor adults who want to regularly save for a child aged 15 and under. |
Interest5.50% Interest will be paid after each year. |
Minimum opening balance£10 to £100 a month |
How long the account stays open for1 year. Then the savings and the interest will be moved into the child's Kids' Saver account. |
WithdrawalsNone, by closure only. |
Find more information |
Account nameFor adults who want to save for a child aged 15 and under. |
Interest3.40% Interest is variable and is paid after each month. |
Minimum opening balance£1 |
How long the account stays open forUntil the child's 16th birthday. Then the account will change to an adult Everyday Saver. |
WithdrawalsUnlimited. |
Find more information |
Account nameFor under 18s who want to save for the future. |
Interest3.65% Interest is paid after each year. |
Minimum opening balance£1 |
How long the account stays open forUntil the child's 18th birthday. Then the account will change to an adult ISA Saver Variable. |
WithdrawalsNone, until the child is 18. |
Find more information |
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A grandparent can open a savings account for their grandchild, in the child’s name, as long as they can provide documentation such as the child’s birth certificate. A grandparent would need to have parental responsibility to open a Junior ISA.
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You can give away £3,000 completely free of inheritance tax in any one tax year. If you don’t gift the full £3000 allowance in one tax year, you can carry over any leftover allowance to the next tax year - up to a maximum of £6,000.
You can make small gifts of up to £250 to as many people as you like, but you can’t give any one person over £250 in a tax year. This means you can’t give someone more than one gift of £250 or combine the £250 with another allowance. For example, gifting someone your £3,000 annual allowance plus a smaller gift of £250 isn’t allowed.
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Children’s accounts, excluding Junior ISAs, are not tax free. It’s a common misconception that children don’t need to pay tax on their savings, but they do – just like adults.
Children may have a Personal Savings Allowance. The first £1,000 of overall savings income earned by basic rate taxpayers will be free from income tax, the first £500 for higher rate taxpayers, and there is no allowance for additional rate tax payers. Depending on personal circumstances, you may need to pay tax on the interest earned and it will be your responsibility to pay any tax owed to HM Revenue and Customs (HMRC).
If a parent (including civil partner and step parent) gifts money to their child and the interest from it is more than £100 a year, then that interest counts towards the parent’s personal savings allowance, and may be taxable depending on the parent’s personal circumstances.
This also applies if the interest on the gift, added to any interest we’ve already paid, makes a gross interest payment of over £100. This £100 threshold applies to each parent individually. All accounts a parent holds for the child (whether or not they are held with the same bank or building society) are taken into account. The £100 rule does not apply to parental contributions to a Junior ISA.
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Yes you can - it’s never too early to start saving for a little one. You can open a savings account for a baby in your name, knowing that the money you save will be for your child.
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Yes, you can open a current account for your child. We have accounts tailored for anyone aged 11-17. To help you decide, take a look at our youth accounts for more details.
Tax treatment depends on individual circumstances and may change in the future.
For a definition of AER, gross and other terms, view our savings glossary.
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