Best children’s savings accounts in the UK for 2025
Put money aside for your kids and teach them about budgeting and saving with a child's savings account.
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It's never too early to teach a child the benefits of saving and being good with their money. A lot of parents and young people view money like English, Maths, or Sport. You're either good at it, or you aren't.
This isn't true! As with anything, with a bit of practice anyone can be good with their money. Teach your children from a young age and they will be savvy for life.
Compare children's savings accounts
Table: sorted by interest rate, promoted deals first
What’s the difference between children’s and adults’ savings accounts?
Children’s savings accounts are very similar to adults’ savings accounts. You just need to take a few things into consideration when opening one:
Who can open the account? Some children’s savings accounts can only be opened by a child’s parent or legal guardian.
Age limits. Different financial institutions have different criteria: some may require a parent or guardian to open an account for a child aged under 18, others might allow the child to open their own account from the age of 11.
Interest rates. Good news: they tend to be higher than with adults’ savings accounts – although that’s not always the case.
When can the money be accessed? Just like with adults’ savings accounts, it depends on the type of account you pick.
What types of children’s savings accounts are available?
Just like with adults’ savings accounts, there are roughly four types of children’s savings accounts you can choose from:
Regular savings accounts. These offer the best interest rates, but you have to commit to depositing a fixed sum into the account every month. The money can’t be withdrawn until the account expires (often after a year). There is usually a limit on the amount that can be deposited over the course of a year.
Easy-access savings accounts. Money can be accessed all the time, in return for a lower interest rate. You can pay into the account at any point.
Fixed rate bonds. You deposit a certain sum when you open the account and only get it back when the product expires (usually after 1-5 years). The longer the money is “locked away”, the higher the rate you can expect.
Junior ISAs. These accounts earn tax-free interest and have to be opened and managed by a parent or legal guardian, but the money belongs to the child and can only be withdrawn when they’re 18. You can only pay the maximum yearly allowance into a junior ISA, which is £9,000 for 2024/2025.
To choose the most suitable account for your child, try thinking about the purpose for opening it. For example, if you want to teach them how to save and manage their money, an easy-access account will be better: you can decide a “savings goal” together and when they reach it, they can withdraw the money and use it to buy, say, that new video game they wanted. If you’re just trying to set aside some money for your child’s university years instead, a Junior ISA or a fixed rate bond may be more suitable.
Junior stocks and shares ISAs
It can sometimes be a good idea to think beyond traditional options for children’s savings. Junior stocks and shares ISAs let you invest with the money you have paid in. You can either choose to use robo-advisors which have a selection of ready-made portfolios or opt for a DIY approach where you’d pick out the individual investments for the portfolio. Just remember that the tax-free allowance is £9,000 in each tax year and all the money paid in belongs to the child and can’t be accessed until they turn 18. Learn more about Junior stocks and shares ISAs.
Four lessons your children can learn from having a savings account
Learn about budgeting. This one is obvious. Opening an account and having money going in and out of it teaches children about the basics of budgeting.
See the value of saving. Most children have their sights set on new toys, video games, and accessories. If you set them up with an account, and drip feed pocket money into the account, they’ll soon realise the value of saving. You might need to point it out, but you’d be surprised how many kids are naturally inclined to save, and become pretty determined to reach their goal!
Understand interest… A regular piggy bank just sees the money sit there. A real bank is actually borrowing your money – and they’ll pay you for it! This is the basic explanation of interest that it’s important to grasp from a young age.
…and how your money can work for you. Linked to interest is the idea that money can work for you. If a child is taught the basics of budgeting, saving, and understanding interest (as well as other tips and tricks!) they will really stretch their money and put it to good use.
Which are the best children’s savings accounts at the moment?
Our best children’s savings accounts are the highest interest rates available. To get the latest rates, we use Moneyfacts data, which covers nearly the full market of savings products and is checked and updated daily. We don’t include accounts from private banks.
All the children’s savings accounts in our list have savings protection – for most, this is the Financial Services Compensation Scheme (FSCS). Other schemes include that of NS&I, which is 100% backed by HM Treasury, and the Gibraltar Deposit Guarantee Scheme.
Halifax – Kids' Monthly Saver - 5.5%
HSBC – HSBC Premier MySavings - 5%
HSBC – MySavings - 5%
Nationwide Building Society – FlexOne Saver - 5%
Bath BS – Junior Cash ISA - 4.89%
Children’s savings accounts and tax
In most cases, children don’t have to pay taxes on the interest they earn on their savings accounts – that’s because they don’t earn any money. However, taxes will apply if:
They earn more than their personal allowance. Say, from a fund in their name. The personal tax allowance for 2024-25 is £12,570.
They earn more than £100 a year in interest from money given by their parents or legal guardians. The thinking behind this is to stop parents, guardians or step-parents using their kids as a tax-free extra allowance. This rule doesn’t apply if the money is given by another relative or a friend.
How can I open a child savings account?
Any parent or guardian can open a child’s savings account or a Junior ISA. Individual providers may have different rules when it comes to an adult who is neither the parent or guardian trying to set up the account, so you’ll have to check that out. There are even savings accounts that the child can only access when they become an adult and turn 18.
Otherwise it’s as simple as opening any normal savings account. You’ll need your personal details and a proof of ID and address for yourself, as well as proof of ID for your child.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife. See full bio
Matthew's expertise
Matthew has written 281 Finder guides across topics including:
Helping first-time buyers apply for a mortgage
Comparing bank accounts and highlighting useful features
While Santander doesn’t offer much in terms of savings accounts for children, its 123 Mini Current Account is a solid option for kids and teenagers. Here’s how it works.
Rooster Money offers a colourful app to teach your kids about budgeting and makes a valid alternative to the traditional children’s current account.
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