Whether you’re teaching your kids how to save their pocket money or investing in their future, opening a children’s savings account can help you access better rates.
Parents in the UK put aside an average of £18,212 for their young ones, according to a study by Flagstone. More than 40 per cent of parents are saving this money for their kids’ education or university, which is why a third plan to hand over the cash when their child turns 18.
But until that day comes, you’ll want to make sure that you’re getting the best possible returns on your child’s cash, outstripping inflation and creating a base for them to build their savings from.
Right now, some children’s accounts are beating the top easy-access savings for adults.
Here are the best options for May 2026 – rates are correct at time of publishing but may be changed or withdrawn at any time.
Nationwide
This easy-access account from Nationwide offers 5 per cent interest on up to £5,000, which is currently the best rate on the market. To open this account, you’ll need a children’s FlexOne Current Account.
Children aged 11 to 17 can sign up for the FlexOne Saver.
However, your child will need to be aged 13 or above for you to open the account online, otherwise, you’ll need to take them into a Nationwide branch.
Kent Resilience
Kent Resilience’s easy-access savings account offers a lower rate of 4.18 per cent, but if you’re looking to save more, this may be a better option as you can deposit up to £25,000.
Additionally, this account has no lower age limit, so it’s a good choice if you want to start saving for your child straight away.
Halifax
Unlike the accounts above, this one from Halifax is a regular saver for kids aged 15 and under.
Regular savings accounts encourage you to make monthly deposits in exchange for a higher interest rate, making it a great way to save for your child’s future. At the end of the fixed term, you’ll have both your untouched savings and your interest, which can be reinvested in a new regular saver.
This Halifax Kids’ Saver pays up to 5.5 per cent for the 12 months from when you open the account. You can deposit between £10 and £100 each month using a standing order, which you won’t be able to withdraw until a year has passed.
Saffron Building Society
If you’re looking for a regular saver for younger kids, check out this one from Saffron Building Society. It pays a lower 3.95 per cent, which is variable for 12 months, but it can be opened for children of any age.
The maximum you can pay into the account over a twelve-month period is £1,200, so an average of £100 a month.
You can open the account either in-branch or by post – see Saffron Building Society’s website for more information.
More ways for young people to save
Junior Isa
Investing in a Junior Isa (Jisa) for your child is one of the most effective ways to save for their future.
This works in essentially the same way as an adult ISA, allowing you to earn interest without paying income or capital gains tax.
The limit for regular Isas is £20,000 per tax year however, for a JISA it’s lower at £9,000.
Check if your child has a Child Trust Fund
A Child Trust Fund (CTF) is a tax-free savings account for children that was issued to everyone born between 1 September 2002 and 2 January 2011.
The government initially put £250 in these accounts, then another £250 when your child reached the age of seven.
It’s worth checking if you or your child has a CTF, as 758,000 matured accounts remain unclaimed and hold an average of £2,240. You don’t need to pay a third-party company to track it down, as you can find it yourself for free at Gov.uk.
Turning 18
Once your child turns 18, they will generally become the sole account holder of their investments, savings, Jisa or CTF.
What your child should do next will depend on their individual savings goals. They could shop around for the best savings account or Isa for adults, get a student account, or invest in a Lifetime Isa (Lisa), which allows them to save towards their first home.
With a Lisa, you can deposit up to £4,000 a year and the government will match this by 25 per cent, so £1,000 for every year you max out. Lisas are set to be replaced with a new product after a government review but for now remain a great option - but just be aware of the limits and rules.
When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
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