Easy Access Childrens Accounts

By John Swindells 07 Dec 2011 | Comment
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NB: This is about bank accounts that children can use themselves, not long-termsaving vehicles for babies, etc.

Let's look at our requirements for a kid's bank account. Most banks and building societies offer savings accounts for children, but it's important to understand how the account will work in practice.

  • Paying in It wants to have physical branch access, as the child will most likely be paying in small amounts of cash on a regular basis.
  • Withdrawing It wants a cash card, so that withdrawals are straightforward too - or maybe a cash card is too easy, in which case branch access is the way to withdraw money.
  • Interest Introductory offers and withdrawal penalties are confusing for adults, so just avoid them for a child account. If they can learn to understand how the interest rate works, without any complicated clauses or options, then that's probably best.

Potential Savings Account Providers

Here is a list, in no particular order, of the high-street banks/building societies that I've come across that seem to offer a decent, easy-access, no-nonsense savings account for a child.

Account Interest rate Minimum balance (£) Cash card? Branch access? Withdrawal limits? Notes
N&P Family Young Saver 1.75% annually 1 Y Y no limit
Halifax Young Saver 2.0% annually 1 Y Y no limit
Little Rock Access Account 3.0% annually 1 Y Y no limit
Nationwide Smart 0.75% annually 1 Y Y no limit Cash card is optional, only from age 11
HSBC MySavings 0.5% 1 N Y no limit MyAccount cash card from age 11+
Natwest Young Saver 0.8%, paid quarterly ? ? Y no limit Only for ages 7-10
Lloyds Young Savers account 3.0%, paid quarterly ? ? Y no limit Gift of a Stanley money box on account opening (subject to availability); Parent must have a Lloyds TSB current account
Santander Flexible Saver for Kids 0.4% annually 1 Y Y no limit Cash card is optional, only from age 11

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