What are Children’s Savings Accounts

• Children’s Savings Accounts are specialised savings accounts which have certain age restrictions such as up to age 18.
• They provide interest payments in return for regular payments in, and can be marketed with incentives such as vouchers or moneyboxes.

Who are they Suitable For?

• It is a good idea to get children in the savings habit and used to dealing with money. These accounts are suitable for this purpose, but a responsible adult should make sure the account is being used correctly!
• Many people use accounts like this to fund a purchase for the child, such as their first car or a university gap year.

What to Look Out For

• Accounts are open to different age groups so make sure the account you’re interested in fits the bill.
• Some account have a penalty for withdrawal from the account. Given the combination of ATM cards and children its worth looking into this carefully.
• Children’s accounts are just like other forms of saving so you need to be aware of the following areas:

• Is the interest rate competitive?
• Is there a bonus included in the advertised interest rate?
• Is there a notice period required for withdrawals?

Take a look at our guide on Things to Watch Out For for savings for some more details on these areas.

What to do next

Get a feel for the Key Factors to Consider when choosing a savings plan, so you can go in knowing what you’re looking for.

Then compare children's savings accounts to find the best deals around with our best buy tables or product searches.

Moneyfacts.co.uk has also put together a range of savings guides if you are looking around for other types of savings plan.