Best Childrens Savings Accounts

Children’s saving accounts are a great way to help teach your child the importance of saving from an early age.

There are many high street banks and building societies offering children’s savings accounts and many of them offer incentives such as freebees, promotional interest rates etc.

By using our comparison table below, you can compare many different children’s savings accounts from many different providers to help you find the Best Savings Accounts For Children.

Best Children’s Savings Accounts
Provider	Account Name	Type of Account	Interest rate (none promotional)	Account Access	Minimum Deposit	Details
	Shepherds Friendly Junior ISA	Stocks and Shares Junior ISA	n/a investment based	Online Telephone Post	£10	Visit Website
	Scottish Friendly Junior ISA	Stocks and Shares Junior ISA	n/a investment based	Online Telephone Post	£10	Visit Website
	The Children’s ISA Junior ISA	Stocks and Shares Junior ISA	n/a investment based	Online Telephone Post	£10	Visit Website
	Family Investments Junior ISA	Stocks and Shares Junior ISA	n/a investment based	Online Telephone Post	£10	Visit Website

	Skipton Leap Account Issue 2	Instant Access	2.25%	Branch Only	£1	Apply in branch only
	Nationwide 1yr Smart Bond	Fixed Notice	2.65%	Branch Only	£1	Apply in branch only
	Buckinghamshire Building Society JS100 - Junior Saver	Fixed Notice	3%	Branch Via Post	£1000	Apply in branch or via post only
	Buckinghamshire Building Society A Star Saver Account	Fixed Notice	3%	Branch Via Post	£100	Apply in branch or via post only
	Northern Rock Little Rock Access Account / Issue 2	Instant Access	3%	Branch Via Post	£1	Apply in branch or via post only
	The Hanley Young Savers	Instant Access	1.35%	Branch Via Post	£10	Apply in branch or via post only
	Mansfield Young Saver	Instant Access	2.5%	Branch Only	£1	Apply in branch only
	Halifax Young Saver	Instant Access	2%	Branch Only	£1	Apply in branch only

Children’s Savings Accounts Explained

Not all savings accounts for children are the same and if your trying to find the best childrens savings accounts then you need to consider the different types of accounts available to you and your child

Junior ISA (Junior Individual Savings Account)
A Children’s ISA account where the funds are safely locked away until the child is 18. We list stocks and shares junior isas above which are investment based so do not pay a fixed interest amount. Many believe that investments over the medium to long term will usually out perform cash accounts plus they are not at risk from the eroding effects of inflation like cash accounts are.

Fixed Term Children’s Savings Accounts
These savings accounts require you to give a fixed term notice to withdraw your money. For example, 30 days, 60 days, 100 days. They will generally pay a slightly higher interest rate due to your money being locked within the account for the agreed term.

Instant Access Childrens Savings Accounts
Instant access accounts let you withdraw your money at any time and usually pay a slightly lower level of interest than a fixed rate account.

Regular Saver Childrens Savings Accounts
These savings accounts for children require you to pay in a minimum regular monthly amount to achieve a higher interest rate. However, whilst the rate is usually higher than with an instant access account it can drop quite considerably should to stop making regular monthly contributions.

Are my Children’s savings tax free?
Most people commonly believe that any money earned by children is tax free where this is actually incorrect. Children are taxed just the same way as adults and should they earn over their tax threshold (currently £7,475 tax year 2011/2012) then any amount over is liable to taxation. The reason many people believe that childrens savings accounts are tax free is that the child never earns over the annual allowance per tax year.

When investing in a cash account always consider inflation
Many parents prefer the simplicity of a cash savings account for their child as they can work out exactly how much the childs money will earn them and they are usually given a savings book where they can always view the childs account ( albeit this is a little old fashioned nowdays ).
An investment account such as a Junior ISA posses more of a risky investment and does not guarantee a fixed return on your funds. However, you should always consider that when investing cash, it is suseptable to the eroding effects of inflation. For example, if your childs savings account is paying a lower level of interest than what the current level of inflation is then the money held within the account will reduce in value (in real terms) each year.

Investments For Children :: Children’s Investments :: Junior ISA :: Best Childrens Savings Accounts
Childrens Unit Trusts :: Transfer Child Trust Fund To Junior ISA :: Child Trust Fund :: Investment Jargon Buster
Junior ISA Regulations :: FAQ’s :: About Us :: Contact Us :: Resources :: Terms & Conditions

Best Childrens Savings Accounts

Best Children’s Savings Accounts