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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

JP Morgan Junior ISA

J P Morgan
Junior ISA

Stocks and Shares Junior ISA

n/a
investment based

Online
Telephone
Post

£50

Visit Site

Shepherds Friendly

Shepherds Friendly
Junior ISA

Stocks and Shares Junior ISA

n/a
investment based

Online
Telephone
Post

£10

Visit Website

Scottish Friendly Junior ISA

Scottish Friendly
Junior ISA

Stocks and Shares Junior ISA

n/a
investment based

Online
Telephone
Post

£10

Visit Site

Childrens ISA Ltd

The Children’s ISA Junior ISA

Stocks and Shares Junior ISA

n/a
investment based

Online
Telephone
Post

£10

Visit Website

Family Investments

Family Investments
Junior ISA

Stocks and Shares Junior ISA

n/a
investment based

Online
Telephone
Post

£10

Visit Website

 

 

 

 

 

 

 


Skipton Building Society - Leap Account Issue 2

Skipton Leap Account
Issue 2

Instant Access

-

Branch Only

£1

Apply in branch only


Nationwide Building Society - 1 Year Smart Bond

Nationwide
1yr Smart Bond

Fixed Notice

-

Branch Only

£1

Apply in branch only


Buckinghamshire Building Society - JS100 Junior Saver

Buckinghamshire
Building Society
JS100 - Junior Saver

Fixed Notice

-

Branch
Via Post

£1000

Apply in branch
or via post only


Buckinghamshire Building Society - A Star Saver Account

Buckinghamshire
Building Society
A Star Saver Account

Fixed Notice

-

Branch
Via Post

£100

Apply in branch
or via post only


Northern Rock - Little Rock Access Account Issue 2

Northern Rock
Little Rock Access
Account / Issue 2

Instant Access

-

Branch
Via Post

£1

Apply in branch
or via post only


The Hanley Economic Building Society - Young Savers

The Hanley
Young Savers

Instant Access

-

Branch
Via Post

£10

Apply in branch
or via post only


The Mansfield Building Society - Young Saver

Mansfield
Young Saver

Instant Access

-

Branch Only

£1

Apply in branch only


Halifax - Young Saver

Halifax
Young Saver

Instant Access

-

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.
     

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