Compare children's accounts

West Brom BS Fixed Rate Regular Saver (Child)

This regular savings account pays a very competitive fixed annual interest rate of 4.60% before tax to young savers who commit to paying in between £10 and £100 each month.

The maximum you can pay into the account over the year is therefore £1,200, so it won’t suit savers with bigger sums to put away.

The 4.60% rate, however, makes it one of the leading children’s regular savings accounts available and it is open to both new and existing customers.

Up to two calendar monthly payments can be missed over the year, but if you miss any more than this, the rate will plummet to just 0.50%. You can’t make any withdrawals over the 12 month period either, so it isn’t suitable for savers who want access to their money.

Interest is paid on the anniversary of the opening of the account. Adults applying for the Fixed Rate Regular Saver (Child) account on behalf of their children will need to include the child's birth certificate as proof of identification.

You must be aged 16 or under to be eligible to open this account, and only one account can be held per customer.

Northern Rock Little Rock Instant Access Issue 2

This account can be opened for any child under 16 years of age and pays 3.00% annual interest on a minimum investment of £1.00. The maximum amount that can be held in the account is £10,000.

The interest rate is variable, so may move up or down.

Only one child can be named on the account alongside a suitable adult. For example, a parent, guardian or a grandparent must be named on the account as a trustee.

The trustee can make withdrawals at any time without penalty, and the minimum withdrawal amount is £1.00.

Don’t forget to register to receive interest tax-free. Children are entitled to income tax allowances in the same way as adults, so, depending on their income, in most cases they won’t be taxpayers.

If a child is eligible to receive interest free of tax, their account can be registered for Gross interest using the HMRC Form R85. Children under 16 years of age cannot register themselves for Gross interest, and their R85 Form must be completed with the child's details and signed by a parent or guardian.

Northern Rock has full Financial Services Compensation Scheme protection, so the first £85,000 you hold with the bank is fully protected.

Chorley & District BS Foxley Fund

This account is aimed at young savers who are unable to benefit from the Child Trust Fund, and must be opened by an adult.

The account, which can be operated in branch or by post, pays a competitive 2.90% annual interest and can be opened with a minimum investment of £1.00.

You can pay into the account whenever you want, but no withdrawals are permitted at any time and the account cannot be closed until the child reaches the age of 18. When they reach this age, the money is theirs to do with what they want.

It is not suitable for young savers who want access to their money before the age of 18.

The maximum amount you can pay into the account in any one year is £3,600. If you don’t pay in the maximum investment in any one year, you cannot carry it forward to the next year.

Children don’t normally have to pay tax on their savings but you will need to complete the HMRC R85 form on your child’s behalf, and give it to Chorley & District BS, for them to receive interest tax-free.

HSBC MySavings

This children’s savings account can be opened with a minimum investment of £1.00, but only pays 1.00% annual interest a year for balances up to £3,000 and this drops to 0.50% for balances of £3,001 or more.

Much higher rates of interest are available on alternative children’s savings accounts, although on the plus side this account does allow you access to your savings without notice or penalty.

Anyone aged between 7 and 17 can open an account, although if you're under 16 a parent or guardian will need to sign the application form too.

The MySavings account comes with a cash withdrawal book, which can be used to take out money at any branch. If you are under 11 and want to take out over £50 you'll need permission from your parent or guardian, and their signature.

On your 11th birthday, HSBC MySavings customers will have a current account opened for them called MyAccount. This comes with a cash card for taking out money at ATMs. Once the customer reaches the age of 18 HSBC will transfer their MyAccount to an HSBC Bank Account, or equivalent account if the Bank Account is no longer on sale then.

Once the account is open it can managed it in branch or by phone. If you have MyAccount, you can also manage the MySavings account online.

Triodos Bank Right Start Saver

This is an ethical savings account for children, which pays 0.80% annual interest before tax on a minimum investment of £1.00. 

Triodos publishes details of every organisation it lends to, so account holders know exactly where their money goes. It only lends to companies that it says make the world a better place.

However, much higher rates of interest are offered by alternative children’s accounts, so this account is most likely to suit those who feel very strongly about saving ethically.

The account can be opened by either an adult or a child. If you’re an adult you can open a Right Start Saver on behalf of a child up to 15 years old. If you’re aged between 7 and 18, you can open a Right Start Saver in your own name. When the child becomes 18, the account automatically becomes a Triodos Saver account.

You can make unlimited notice-free withdrawals from this account, which can be managed online or by post.

Interest earned is taxable, but children are usually exempt. You can apply for exemption by downloading the necessary R85 form from the HMRC website.

Nationwide BS Smart

This children’s savings account is available to anyone under the age of 18, but only pays 0.75% annual interest on a minimum investment of £1.00.

 
The rate remains the same regardless of how much you hold in the account.

Much higher rates of interest are available on alternative children’s savings accounts, although this account does allow as many withdrawals as you like without penalty.

You can apply in any Nationwide branch or online if you are 11 or over. At this age you can also choose whether or not you want a cash card.

The account gives savers access to Nationwide’s Smart Rewards scheme, which gives savings on a range of learning activities, fun events, sports, dance and shopping.

There can only be one account holder if the account is opened by a child aged 7 or over, or two account holders if it is opened by an adult on behalf of a child under the age of 16.

Interest earned is taxable, but children are usually exempt. You can apply for exemption by downloading the necessary R85 form from the HMRC website, or by requesting it from Nationwide.