Opening a bank account for your 11-year-old can help them gain a better understanding of how money works and equip them with the tools they will need in later life. Many providers offer bank accounts for children, some of which come with a choice of a cash card or a debit card.
This guide takes a closer look at what’s available.
Can an 11-year-old open a bank account?
Yes, children aged 11 years old can open a bank account, but they will usually need to be accompanied by a parent or guardian.
High street bank accounts will typically need to be opened over the phone or in branch. Proof of ID, such as a passport or full UK birth certificate, must be provided for the child, while proof of address, such as a utility bill, must be provided for the parent/guardian.
Some digital-only providers also offer children’s accounts which will usually need to be set up by the parent. Accounts can be opened online or via the provider’s app.
What types of accounts are available?
Those aged 11 and over can typically choose from a current account, a savings account or a prepaid card.
Current accounts
Current accounts for 11-year-olds work in a similar way to adult current accounts, but you may be given a choice of a cash card or a debit card. Cash cards can only be used to make withdrawals at ATMs, while debit cards can also be used to make purchases online and in-store.
In addition, the account can be used to make bank transfers and set up direct debits and standing orders. Some accounts also pay interest on balances, but there will be no overdraft facility available.
Savings accounts
Savings accounts are designed to help your child develop good savings habits and interest will be paid on the balance. Some accounts can be held in trust for the child, while other accounts can be held in the child’s name.
Prepaid cards
With a prepaid card, funds must be added to the card in advance. The card can then be used for spending and cash withdrawals. Once the money on the card runs out, the cardholder can no longer make any purchases until the card is topped up with further funds. Prepaid cards are usually managed via a mobile app and can be linked to a parent’s account.
What’s the difference between children’s prepaid cards and children’s bank accounts?
A key difference between them is parental control. Children’s bank accounts are held in the child’s name which means they have overall control of the account. Although parents can make payments into the account, they won’t be able to restrict how the money is spent.
With a prepaid card, on the other hand, the account will be linked to a mobile app, allowing parents to see what their child is spending where. Many prepaid cards allow parents to set spending limits, restrict where the card can be used (such as online) and block and unblock the card if required. However, unlike most children’s bank accounts, there will usually be a monthly fee for prepaid cards.
Prepaid cards tend to be a better choice for younger children, but as they get older they might prefer the independence that comes with a bank account.
Are bank accounts for 11-year-olds safe?
There’s no overdraft facility on children’s bank accounts, so you won’t need to worry about your child getting into debt. However, parental control is lacking which means it can be difficult to monitor what your child is spending where or stop them from shopping at certain stores or websites.
In terms of protection for your money, all UK-regulated current accounts and savings accounts are protected by the Financial Services Compensation Scheme (FSCS), including accounts held in a child’s name. This protects up to £85,000 per person per institution in the event the bank goes bust.
FSCS protection does not apply to e-money institutions, which includes prepaid cards. However, e-money institutions must be regulated by the Financial Conduct Authority (FCA). They are also required to keep customer funds in a segregated account that is protected by safeguarding requirements under the Electronic Money Regulations 2011.
Pros and cons of bank accounts for an 11-year-old
Pros
No monthly fee
No overdraft available, so your child cannot get into debt
Can encourage good money management skills
Interest sometimes paid on account balances
Cons
Lack of parental control with standard bank accounts
Prepaid cards usually charge monthly fees
Fees typically apply to card transactions abroad
Bottom line
Opening a bank account for your 11-year-old is a great way to increase their understanding about money and teach them how to budget and save. Plus, with no overdraft facility, there’s no worry that they’ll get into debt.
However, the downside of traditional children’s bank accounts is that there is no parental control, meaning it can be difficult to keep an eye on how your child is using their account. If this worries you, you might be better off with a prepaid debit card instead, so that you can monitor transactions and put spending restrictions in place.
Finder survey: How confident do you feel teaching your child/children about the bank base rate?
Response
Male
Female
Neither confident nor unconfident
32.75%
29.82%
Quite unconfident
17.47%
24.94%
Quite confident
24.45%
18.38%
Very unconfident
7.86%
17.99%
Very confident
17.47%
8.87%
Source: Finder survey by Censuswide of 1007 Brits, July 2023
Frequently asked questions
No, overdraft facilities are not available on child bank accounts.
Not usually. Children have the same personal allowances as adults which means for the 2021/22 tax year, they can earn £12,570 before paying tax. They are also eligible for the £5,000 starting rate for savings and the £1,000 personal savings allowance, so they can earn a total of £18,570 this tax year before tax is due.
However, tax will be payable if money gifted by parents earns more than £100 in interest per year before tax. You can find out more here.
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Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio
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