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Best children’s savings

Best Children’s Savings Accounts in the UK (2025 Guide)

Teaching kids to save money is one of the best financial lessons you can offer. Whether you’re a parent, grandparent, or guardian, choosing the right savings account can help a child start their financial journey on the right foot.

With so many savings options available in the UK, including Junior ISAs, regular children’s accounts, and even app-based solutions, it’s essential to understand what works best for your child’s needs.

Why Open a Children’s Savings Account?

Children’s savings accounts offer:

  • A safe place to store money gifted by parents, grandparents, or relatives

  • Competitive interest rates (often higher than adult accounts)

  • A valuable opportunity to teach financial responsibility

Most importantly, these accounts help children watch their money grow, which encourages long-term saving habits.

Types of Children’s Savings Accounts Explained

Before diving into the best offers, let’s quickly review the main types of accounts available in the UK:

Account Type Best For Access Rules Tax-Free?
Children’s Easy Access Day-to-day savings and flexibility Money can be withdrawn at any time No
Regular Saver Monthly savings and building habits Often limits withdrawals No
Junior Cash ISA Long-term tax-free savings for under 18s Locked until the child turns 18 ✅ Yes
Junior Stocks & Shares ISA Investment-based long-term growth Locked until age 18 ✅ Yes
App-Based Accounts Hands-on learning with parental controls Usually linked to debit cards No (depends on provider)

Top UK Children’s Savings Accounts in 2025

Here’s a roundup of the best-performing children’s savings accounts currently available in the UK:

Bank/Provider Type Interest Rate Min Age Withdrawals Notes
HSBC MySavings Easy Access 5.00% AER (on £3k) 7–17 yrs Anytime Converts to MyMoney account at 18
Lloyds Smart Start Account + Debit Card 4.50% AER 11–15 yrs With parental controls Includes a savings pot & spending card
Nationwide FlexOne Saver Easy Access 5.25% AER 11–17 yrs Instant access No fees, no minimum balance
Santander 123 Mini Current Account + Saver 5.00% AER (up to £1k) 11–17 yrs Instant access Good for pocket money & saving combo
Halifax Kids’ Saver Easy Access 4.00% AER 0–15 yrs Anytime Converts to adult saver at 16
NS&I Junior ISA Junior Cash ISA 3.65% AER (tax-free) 0–17 yrs Locked until age 18 Backed by UK Treasury
Starling Kite App-Based Account None (not interest) 6–16 yrs Linked to parent’s app Budgeting tools + spending card

Note: Rates are accurate as of June 2025 and may change. Always check the provider’s website before applying.

What Is the Best Savings Option for a Newborn?

If you’re saving for a baby or toddler, the NS&I Junior ISA or Halifax Kids’ Saver are excellent places to start.

Junior ISAs are tax-free, ideal for long-term goals like education or a first car. On the other hand, an instant access account like Halifax’s lets you gift money at birthdays and top it up easily.

How to Open a Children’s Savings Account

You can open most children’s savings accounts in a few simple steps:

  1. Choose your bank — compare interest rates and account types

  2. Provide ID — usually the child’s birth certificate and parent/guardian ID

  3. Deposit the minimum amount — often as low as £1

  4. Set up regular saving — optional, but highly encouraged

Some banks, like Barclays and Lloyds, allow account opening in-branch, while others like Starling and Monzo offer app-only onboarding.

Tax Rules: Do Kids Pay Tax on Savings?

Children generally don’t pay tax on their savings unless they earn more than £1,000 interest in a year (which is rare).

However, if the money comes from a parent and earns over £100 in interest per year, that interest might be taxed as the parent’s income unless it’s in a Junior ISA.

This is why Junior ISAs are such a popular choice for family savings—they’re completely tax-free.

App-Based Savings for Kids: Are They Worth It?

Digital banks like Starling Bank (Kite) and Revolut <18 are becoming increasingly popular with tech-savvy families.

Benefits:

  • Real-time spending alerts

  • Saving pots and budgeting features

  • Debit card control by parents

However, most of these accounts don’t pay interest, making them better for learning money management than for growing savings.

Junior ISAs vs. Easy Access: Which Is Better?

If you want:

  • Flexible access to savings: go for easy access or regular saver accounts

  • Long-term growth without tax: pick a Junior ISA

Quick comparison:

Feature Junior ISA Children’s Saver
Tax-Free Interest ✅ Yes ❌ No
Accessible Anytime ❌ Locked until 18 ✅ Yes
Contribution Limit £9,000/year (2025) Usually no strict cap
Ideal For Long-term savings Regular, short-term use

Tips to Maximise Children’s Savings

  • Start early — Even small amounts compound over time

  • Use standing orders — Set and forget monthly contributions

  • Involve your child — Show them how interest grows

  • Split goals — One pot for long-term (e.g. JISA), one for short-term

Even saving £10 per month from birth could grow into £3,000+ by age 18, especially in high-interest accounts.

Trusted Providers for Children’s Savings

You can explore the best current offers directly from trusted UK financial institutions:

Summary: What’s the Best Children’s Savings Account in 2025?

It depends on your goals:

✅ For flexible access: HSBC MySavings or Nationwide FlexOne
✅ For long-term tax-free savings: NS&I Junior ISA
✅ For teaching money habits: Starling Kite or Revolut <18
✅ For top fixed interest: Lloyds Smart Start or Halifax Kids’ Saver

The key is to start early, stay consistent, and use different types of accounts based on short vs. long-term goals.

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