Best Children's savings accounts

Child savings accounts work similarly to regular savings accounts for adults. Money deposited earns interest over time, and the account can be opened by a parent or guardian on the child’s behalf. The money in the account legally belongs to the child. Some accounts are easy-access; others are fixed-term and offer a higher rate in exchange for locking the money away. At an age specified by the provider (typically 16–18), the child can take over management of the account themselves.

Yes, a child can have more than one savings account registered in their name. In addition to standard savings accounts, a child can also hold a Junior ISA (up to one Cash JISA and one Stocks and Shares JISA) and a Junior SIPP. Having a savings account alongside a Junior ISA can be useful - the savings account for shorter-term goals and the ISA for longer-term tax-efficient saving.

Yes, a grandparent can open a savings account for their grandchildren, provided it's not a Junior ISA. They'll need to submit some documentation including the child's birth certificate. Parents and guardians can also open savings accounts for their children.

Children’s savings account rates change regularly in line with the Bank of England base rate. Some of the highest rates available to children come from regular savers (which require a fixed monthly deposit) or fixed-term accounts. Our rankings above are based on real customer reviews, showing which providers are rated most highly for rate, service and ease of use. For the latest best-buy rates, compare accounts using current best-buy tables alongside our reviews.

Children have the same Personal Allowance as adults (£12,570 in 2025/26), so most children will never pay tax on savings interest. However, if a parent gifts money and the child earns more than £100 in interest per year from that gifted money, the parent will be taxed on it as if it were their own income. This rule doesn’t apply to gifts from grandparents or other relatives, or money the child earns themselves.

A children’s savings account is a straightforward savings account that earns interest, and can usually be accessed before the child turns 18. A Junior ISA is a tax-efficient account that locks the money away until the child’s 18th birthday, at which point it matures into an adult ISA. Junior ISAs have an annual contribution limit of £9,000. Both are worth having - a savings account for shorter-term goals, a Junior ISA for longer-term tax-free saving.