A children's savings account can be opened with most banks and building societies. The best children's savings accounts will likely pay a significantly higher interest rate compared to adult savings accounts, making them a great way to save for your child's financial future.

Saving for your child is a part of financial planning you will not want to skip. Paying into the best children's savings account for your child can make a significant difference to their financial future. While there is no perfect formula to follow, you should be able to find an account that can fit your needs and financial goals.

The best children's savings account will be the one that fits how you want to save for your child and also gives you the best return.

To find the best savings account for kids, think about the following:

  • How often you want to save: e.g. a lump sum at the start or adding to it when you can

  • How much access you want: e.g. instant access or could you give some notice

  • How you want to manage it: e.g. some accounts let you check your balance and complete transfers online.

  • If you are willing to take some risk for a better return: e.g. putting your child's money in a stock market investment

Learn more about saving for your child here

Who can open a children's savings account?

A children's savings account can be opened by you on behalf of your child if you are their parent or guardian, others let you open them if you are another family member or friend.

What types of account are there?

These are the different types of children's savings account you can find on our table:

  • Young person's savings plan: Stocks and shares investment schemes designed for regular monthly investments over a minimum term of 10 years.

  • Fixed bond: Savings account that lets you earn a fixed interest rate over a short or long term period, such as 1 to 5 years.

  • Regular saver: Usually pay the highest interest rates and let you save on behalf of your child on a monthly basis.

  • Junior notice: Savings accounts that require you to give a set number of days' notice before you can withdraw funds penalty free.

  • Instant access: Savings account that lets you withdraw anytime without penalty. These usually have lower interest rates than other children's savings accounts.

You can use the filters on our table to compare the type of children's accounts you are most interested in.

ISAs for children

Your child can only have one Junior cash ISA and Junior stocks and shares ISA, and pay in up to a combined amount of 4,080 each tax year.

  • Junior cash ISA: Cash savings accounts that uses your child's ISA allowance. You can only open this account if you are the child's parent or guardian.

  • Junior stocks and shares ISA: Stocks and shares investment using your child's ISA allowance. You can only open this account if you are the child's parent or guardian.

Both the Junior ISA and Junior stocks and shares ISA cannot be closed until your child's 18th birthday, when the account will transfer over to their name only.

How much can you save?

The Junior ISA allowance is 9,000 in the 2020/21 tax year.

The allowance resets every tax year, so you can theoretically add the maximum amount to the Junior ISA each tax year until your child turns 18.

If you open both a cash Junior ISA and a stocks and shares Junior ISA, you will need to make sure you do not collectively exceed the Junior ISA allowance. The allowance applies across both accounts, meaning your combined deposits for both accounts could not exceed 9,000 in the 2020/21 tax year.

Any adult can pay into a child's Junior ISA account if they have the correct account details (usually the sort code, account number and reference number, if applicable).

Can you withdraw money from a Junior ISA?

No. Money you put into a Junior ISA cannot be withdrawn until your child turns 18 years old. The Junior ISA will then turn into an instant access ISA in your child's name.

Find out more about Junior ISAs here

Children's account FAQs


Will the account be in my child's name?


Yes, but you will manage it on their behalf until they reach a certain age, such as 18 years old. Here is more information on children's accounts.


Does my child need to pay tax?


Each child can earn 1,000 in savings interest each year before paying tax each as well as 100 in interest earned from money given by a parent.


Can I save on behalf of my grandchild?


Yes, with the exception of a few accounts like Junior ISAs which require a parent or legal guardian to open.


Does my child have a personal savings allowance?


Yes, up to 1,000 in interest can be earned tax free each year in addition to a 100 allowance from money given by a parent. Find out more here.


Who can withdraw money from my child's account?


Whoever is the named account holder, with the exception of a Junior ISA that ties the money up until your child's 18th birthday.

About our children's savings accounts comparison


Who do we include in this comparison?


We include every personal savings account available to children. They are regulated by the Financial Conduct Authority (FCA).

Here is more information about how our website works.


How do we make money from our comparison?


We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.

Last updated: 15 January 2021