Loading ...Childrens standard savings accounts
Most banks and building societies offer savings accounts aimed specifically at children. Many allow easy access and unlimited withdrawals, although some may require notice, say 30 or 60 days before a withdrawal is made. Both notice and easy access products are ideal if the main purpose of the account, is to encourage a child to get into the habit of saving money they receive for birthdays and Christmas.
The best rates of interest tend to be on regular saver deals. These require money to be deposited on a monthly basis making them popular choices for god-parents and family members who want to save on behalf of a child. The minimum deposit is often as little as £10 a month, while the maximum tends to be about £100.
Interest rates on children’s savings accounts vary significantly. Click here to see how current rates compare.
In most cases the parent or guardian of the child in question will operate the account – usually until the child reaches the age of 16.
Children have the same tax allowances as adults. The current entitlement allows them to earn £5,435* before having to pay tax. However, given that most children will not earn more than that, and therefore won’t be taxpayers, they can have their savings interest paid gross by completing an R85 form.
