Kids' Savings Accounts


Whether they’re toddlers, teens or somewhere in between, start saving for their future with Halifax. 

We offer a range of savings accounts that help parents, guardians, and grandparents to put money aside for a child. While they grow, their savings can too.

 

Compare kids’ savings accounts

You won’t earn interest on money in their piggy bank. Instead, pick a savings account or ISA designed to build your child’s savings over time.

kids’ savings accounts

Account

Interest

Minimum first deposit

Open for

Withdrawals

More info

Account

Money Smart

For 11–15-year-olds, providing a current account and savings account.

The parent or legal guardian needs a Reward Current Account or Ultimate Reward Current Account to open this account.

Interest

3.40% AER/3.35% gross on balances from £1 - £1,000.

1.45% AER/1.44% gross on any excess above £1,000.

Interest is variable, paid monthly and applies to the savings account only.

Minimum first deposit

£1

Open for

Until the child’s 18th birthday. The savings account will then change to an adult Everyday Saver. The spending account will change to an adult Current Account.

Withdrawals

Unlimited.

More info

Account

Kids' Monthly Saver

For adults who want to regularly save for a child aged 15 and under.

Interest

5.50%
AER/gross fixed.

Interest is paid after each year.

Minimum first deposit

£10 to £100 a month

Open for

One year. Everything you save will then be moved to a Kids' Saver account.

Withdrawals

By account closure only.

More info

Account

Kids' Saver

For adults who want to save for a child aged 15 and under.

Interest

3.40%
AER/3.35% gross on balances from £1 - £5,000.
1.45%
AER/1.44% gross on any excess above £5,000.

Interest is variable and paid monthly.

Minimum first deposit

£1

Open for

Until the child's 16th birthday. The account will then change to an adult Everyday Saver.

Withdrawals

Unlimited.

More info

Account

Junior Cash ISA

An ISA for anyone aged under 18.

Interest

3.65%
tax free/AER variable.

Interest is paid after each year.

Minimum first deposit

£1

Open for

Until the child's 18th birthday. The account will then change to an adult ISA Saver Variable.

Withdrawals

None, until the child is 18.

More info

Account

Instant Saver

If you have an Everyday Saver, Fixed Saver, Bonus Saver, Reward Bonus Saver or Family Boost Fixed Savings Account with us, it will change into this account at the end of its term.

Interest

1.45%
AER/gross on balances from £1 - £9,999. 

1.50% 
AER/gross on balances from £10,000 - £49,999. 

1.80% 
AER/gross on balances of £50,000 or more.

The interest rate is variable. The rate applies to the full balance. Your interest frequency will stay the same as it was on your previous account.

Minimum first deposit

£1

Open for

No end date.

Withdrawals

Unlimited.

More info

You cannot apply directly for this account.

Instant Saver

 

Tax treatment depends on individual circumstances and may change in the future.

Interest on savings

Interest rates can change. You can check current interest rates online at any time.

Explaining some common terms

AER

As well as making it easier to compare accounts, the Annual Equivalent Rate (AER) helps you to understand how much interest you could earn from your savings in a year.

AER includes the effect of compound interest – essentially the interest you earn on top of any interest that’s already part of your savings balance.

More on AER

Tax free

You don’t usually need to pay tax on interest earned on:

  • ISAs
  • Kids accounts.

Adults can earn a certain amount of tax-free interest on their savings each year, depending on your:

Gross

This is the percentage of interest you’ll earn on savings, pre-tax. Halifax won’t deduct any tax due, so you’ll need to declare and pay anything you owe to HM Revenue and Customs.

Frequently asked questions

  • A grandparent can open a savings account for their grandchild. It has to be in the child’s name and they must provide documentation such as the child’s birth certificate. A grandparent would need to have parental responsibility to open a Junior Cash ISA. 

  • Children’s accounts, apart from 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 taxpayers. 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 & Customs (HMRC). 

    If a parent (including civil partner and stepparent) 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. It 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 (regardless of whether they are held with the same bank or building society) are considered. The £100 rule does not apply to parental contributions to a Junior ISA. 

  • Yes, it’s never too soon to start saving for a child. Select either a Kids’ Saver or a Kids’ Monthly Saver account, designed for children under 15 years old. Or, you might like to consider a Junior Cash ISA, locking money away until your child turns 18 years old. 

Supporting your child's savings journey

Halifax Savers Prize Draw

Every month, our Savers Prize Draw makes three lucky savers £100,000 better off. Visit the prize draw page for the full draw rules.

Find out how to register

Savings calculators

Work out a monthly savings amount, how long it will take to reach a goal, and understand the future value of your child's savings using one of our handy calculators.

Calculate your savings

Youth and student accounts

Check out the full range of Halifax youth and student accounts, helping kids and young adults to manage their money day to day, and save for the future.

Youth and student accounts

Financial Services Compensation Scheme

Eligible deposits held with us are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS), the UK’s deposit guarantee scheme.

FSCS logo 

Visit our FSCS page

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