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Compare Latest Children's Savings Deals

Scottish Friendly
My Select Junior ISA Scottish Friendly
Open from £10
Term No fixed term
Investment Linked Choose from 8 funds

Why we like it: Invest tax-free from £10 a month or a £50 lump sum — or a mix of both.You can raise, lower, stop and restart your payments any time you like.Your money will be invested in a My Choice policy within a Scottish Friendly Junior ISA which invests in your choice of funds. When you start investing we'll send you a £25 My Rewards card which can be redeemed for gift cards at over 50 UK retailers.

Disclaimer: The value of your investments can fall as well as rise, so your child could get back less than you paid in.

One Family
Ethical Junior ISA One Family
Open from £10
Term No fixed term
Investment Linked Charities Ethical Trust Fund

Why we like it: Winner of the 2016 Moneyfacts Award for Best Junior ISA Provider. You choose how much you want to pay in, and when. From £10 to £340 a month up to £4,128 in the 2017/2018 tax year. Easy to manage: 24/7 Online Account Management and a friendly UK based call centre.

Disclaimer: Only your child can access the money and only at age 18. The value of your investments can fall as well as rise, so your child could get back less than you paid in.

One Family
Junior ISA One Family
Open from £10
Term No fixed term
Investment Linked Balanced International Fund

Why we like it: Apply online and receive a £30 Amazon e-voucher (T&C’s apply – see OneFamily website for details). Winner of the 2016 Moneyfacts Award for Best Junior ISA Provider. You choose how much you want to pay in, and when. From £10 to £340 a month up to £4,128 in the 2017/2018 tax year. Easy to manage: 24/7 Online Account Management and a friendly UK based call centre.

Disclaimer: Only your child can access the money and only at age 18. The value of your investments can fall as well as rise, so your child could get back less than you paid in.

Shepherds Friendly
Junior ISA Shepherds Friendly
Open from £10
Term No fixed term
Investment Linked Invested in With Profits fund

Why we like it: Shepherds Junior ISA lets you save regularly to offer your child a head start in life. You can save up to £4128 a year TAX-EFFICIENTLY if your child is aged under 18 and does not already have a Child Trust Fund in their name. You can invest from just £10 a month and can pay in lump sums from a minimum of £100 initially and £10 at a time thereafter. Apply for a Shepherds Friendly plan online and get a Love2Shop voucher code worth up to £50* once you’ve made your first payment into the plan

Disclaimer: Stocks and Shares Junior ISAs offer the potential for higher returns than Cash Junior ISAs, particularly if you choose to invest for the long-term. However, you do need to know that, as the underlying value of your child’s investment is linked to the fluctuations of the stock market; although the value cannot fall there is no guarantee that bonuses will be added each year.

Shepherds Friendly
Young Saver Plan Shepherds Friendly
Open from £7.5
Term 10 years+
Investment Linked Invested in With Profits fund

Why we like it: Investing for the child offers the potential for higher returns over the long-term on their money than would be available by saving in most cash savings accounts, however there are no guarantees with regards to the size of the bonus that will be paid each year.

Disclaimer: Investment growth is by means of bonuses, the amount of which cannot be guaranteed throughout the term of the contract.

Shepherds Friendly
Junior Money Maker Plan Shepherds Friendly
Open from £100
Term 10 years+
Investment Linked Invested in With Profits fund

Why we like it: The Shephereds Junior Money Maker Plan is a tax-efficient investment plan for children which aims to provide the child with a tax-free lump sum that they can use to help them towards the cost of paying for university, or to assist with any other goals they may have, such as buying a home or starting a career. The plan is designed to help you save enough over the long-term to cover the majority, if not all of the child’s fees when they start higher education, and offers a unique withdrawal process that allows them to take the money gradually throughout their university career. Apply for a Shepherds Friendly plan online and get a Love2Shop voucher code worth up to £50* once you’ve made your first payment into the plan

Disclaimer: Investing for the child offers a greater potential for growth over the long-term than is typically available in a cash-based savings account, but you should consider that, unlike cash accounts that tend to have a set interest rate, the size of each annual bonus is not guaranteed.

Compare children’s savings accounts

It is generally a good idea to get children used to the idea of saving their money at a young age so they will be more likely to manage their money responsibly as they get older.

A savings account can allow kids to put aside some or all of their pocket money, plus money they receive for special occasions such as birthdays and Christmases. This money can form a nest egg to go towards any number of big expenses, such as buying a first car, going to university or even saving towards the deposit on a house.

There are various different savings accounts to choose from and different issues to consider to make sure you get the right savings plan for your children.

Do children pay tax on their savings?

Many people think that children do not have to pay tax, but this is not true. Children have the exact same tax liability as adults, but most children do not earn enough to ever actually have to pay any tax.

When it comes to their savings, children have the same personal savings allowance as adults, meaning they can earn up to £1,000 in interest on their savings tax-free.

As most children have no income, they can also use their personal tax allowance against any interest earned from savings. For the 2017/18 tax year, this personal allowance is £11,500.

Children with no significant income are also likely to qualify for the £5,000 starting savings allowance, applicable to those on a low income.

This means most children can earn up to £17,500 in interest on their savings in the 2017/18 tax year without paying any tax.

The best savings accounts for children

There are various savings accounts that let your child start putting money aside and earning interest. Which account will be the best choice for you children will depend on how much they have to save and what they want to use those savings for.

Barclays Children’s Regular Saver account

This is a short term savings account, designed to let your child build up their savings over 12 months. It can be accessed online, by mobile or in brand and allows your child to save up to £1,200 over a year.

Simply deposit anywhere from £5-100 pounds into the account each month via standing order for 12 months and your child will earn 3.5% AER for every month where they make no withdrawals and 1.51% AER for any months where they do make a withdrawal.

Halifax Kids’ Regular Saver

A monthly savings account for children aged 15 and under. It allows you to make regular monthly deposits for 12 months, after which the money accumulated is transferred into Halifax Young Saver account or any other account of your choice.

You can save from £10-100 per month and will received interest at 4% AER, but you are not allowed to make any withdrawals until the year is up. You can apply for an account in branch or online, but the account can only be managed in branch.

Nationwide FlexOne Regular Saver

This account is aimed at older children, aged 11-17, allowing them to save up to £100 a month with an interest rate of 3.50% (variable). You can open the account with anywhere from £1-100 and there is no minimum required monthly deposit.

You can keep the account until you turn 23, making it a good choice for longer term saving.

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Simplysavingsaccounts.co.uk is a trading style of Fair Investment Company Ltd.

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