{"id":1442,"date":"2022-04-01T10:10:28","date_gmt":"2022-04-01T10:10:28","guid":{"rendered":"https:\/\/www.dayoutwiththekids.co.uk/hub\/?p=1442"},"modified":"2023-02-06T14:30:03","modified_gmt":"2023-02-06T14:30:03","slug":"best-savings-accounts-for-kids","status":"publish","type":"post","link":"https:\/\/www.dayoutwiththekids.co.uk/hub\/parenting\/best-savings-accounts-for-kids","title":{"rendered":"Best Savings Accounts for Kids"},"content":{"rendered":"

Thinking about your kids’ future but need some money guidance? You are not alone and money worries are very common in families. Every parent wants to give their kid a helping hand in life and what better way to do that than to set up a bank account for your child. But what are the best savings accounts for kids<\/strong>? With so many different accounts to choose from and confusing savings account rates, it can get overwhelming quickly!<\/span><\/p>\n

Well, worry no more! We have scoured the web for the best savings guides, tips, and the best national banks in the UK. Whether you are saving for your child’s first car, education, first home deposit, or saving for something of their choice, it’s good to kick off your savings habit ASAP.<\/span><\/p>\n

In this blog, we will look at the top picks for the best savings accounts for kids from various comparison sites around the UK, with some additional info on each type of account.<\/span><\/p>\n<\/div>

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Money-Saving Expert Recommendations<\/a><\/h3>\n

According to the<\/span> Money Saving Expert website<\/b>,<\/span> unlike adult accounts, children’s bank accounts can still earn up to<\/span> 3% interest<\/b> on their savings! So it’s very important to think about where you want to put your money, as some banks offer you<\/span> 0%.<\/b> As parents, it’s important to learn how to make your money work for you so that you & your child benefit the most from your savings plan!<\/span><\/p>\n<\/div>

The Top 3 Easy Access Accounts for Children<\/b><\/h2>\n<\/div>

Easy access accounts are great for depositing lump sums at any time as there are no restrictions. You or your child can access these accounts too. The only drawback is that you will be offered a lower interest rate in comparison to other account types.<\/span><\/p>\n

Santander:<\/h4>\n

3% on up to \u00a32,000<\/span><\/p>\n

HSBC:<\/h4>\n

2.5% on up to \u00a33,000<\/span><\/p>\n

Barclays:<\/h4>\n

1.51% on up to \u00a310,000<\/span><\/p>\n<\/div>

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Best Regular Savers Accounts<\/h3>\n<\/div>

Regular or basic savings accounts generally allow you to earn interest on your money, although they usually pay lower rates than other savings products. <\/span>These are the best regular saver accounts where you can save small amounts monthly…<\/span><\/p>\n

Saffron BS:<\/h4>\n

3.02% fixed for one year.<\/span><\/p>\n<\/div>

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Best Fixed-Rate Savings Accounts<\/h3>\n<\/div>

In a Fixed Rate Savings Account, you lock away your savings for a set amount of time at a set interest rate – you can also set the amount of time and interest rate, depending on which bank you choose. You may have heard this type of banking referred to as a fixed-term bond as well.<\/span><\/p>\n

Cambridge BS:<\/h4>\n

1.5% on up to \u00a320,000.<\/span><\/p>\n<\/div>

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Top Pick of Junior ISA’s<\/h3>\n<\/div>

What is a Junior ISA?<\/strong> <\/span><\/h3>\n

Junior ISAs are tax-free savings accounts that under-18s (or their parents) can save or invest with a maximum balance of \u00a39,000 this tax year. Here is a list of the top-pick accounts:\u00a0<\/span><\/p>\n

The Family BS:<\/h4>\n

With 2.4% interest rates on savings.<\/span><\/p>\n

Tesco Bank:<\/h4>\n

Offering 2.25% interest rates on savings.<\/span><\/p>\n

Coventry BS:<\/h4>\n

2.25% interest rates on savings.<\/span><\/p>\n

Halifax:<\/h4>\n

2% interest rates on savings.<\/span><\/p>\n<\/div>

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Child Trust Funds (CTFs)<\/h3>\n<\/div>

What are Child Trust Funds?<\/strong> <\/span><\/h3>\n

CTF’s were offered between 2002 and 2011. If your child has got one, you can now add up to <\/span>\u00a39,000 a year to it<\/b>, or you can convert it into a <\/span>junior ISA (JISA)<\/b>. Here is the top Child Trust Fund for transfers:<\/span><\/p>\n

Skipton BS:<\/h4>\n

2% interest rates on savings<\/span><\/p>\n<\/div>

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Which? Savings Account Recommendations …<\/b><\/a><\/h4>\n

According to<\/span> Which?<\/span><\/a>, The age range of children that a bank or building society is willing to accept can also vary. You should always check that your child is the right age for the account before you get excited about the generous interest rates on offer. <\/span><\/p>\n<\/div>

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Current Accounts For Kids<\/h3>\n<\/div>

Current accounts are a great way to teach your child the lifelong skill of money management and financial planning. For kids, current accounts start in the UK at <\/span>age 11<\/b> and many banks offer interest on current accounts – as long as there’s money in there of course!\u00a0<\/span><\/p>\n

According to <\/span>Which?,<\/span><\/i> Santander is the best current account for kids as they pay the top rate of 3%<\/b>. An additional bonus to Santander is that there is no overdraft facility, so children can’t rack up debt.\u00a0<\/span><\/p>\n

For kids under 16,<\/b> parents can choose whether their child gets a debit card or a cash card.<\/span><\/p>\n