Why open a kids' savings account?

Opening a children’s savings account is often a big milestone for parents and carers. It’s a great way to save for their future and teach kids about money. You can make the most of this by helping the children in your life to pay into the account, so they get used to the idea of regular saving. Remember to point out how the balance is growing too!

Who can open a savings account for a child?

If you’re opening a children’s saving account for a child under 8, you’ll need to be either a family member or have parental responsibility for the child. Our children’s accounts are suitable for a UK resident who is under 21 years old.

Are children’s savings accounts tax free?

Interest from a Children’s Savings Account isn’t tax-free. Whether you need to pay tax is dependent on your own personal circumstances and so may be subject to change in the future. Interest is paid gross i.e. without tax being taken off on all our savings accounts – ISA accounts pay interest tax-free.

Can I make withdrawals from a children’s savings account?

With our One Day Account, you can make unlimited instant withdrawals, subject to daily withdrawal limits, without loss of interest. All withdrawals must be for the benefit of the child named on the account. If we are unsure as to what the funds are used for then our staff may ask you to provide proof of this. Please do not be offended if you are asked for this information. Please be aware if a withdrawal is made from the account by CHAPS a charge of £23.50 will be incurred. Proof of name ID will be required.

Children's savings accounts

Helping kids save for their future.

Some of our variable interest rates will go down on 5th February 2026. Select an account to find out what the new rate will be. Fixed rate accounts are not affected.

Some of our variable interest rates will go down 2 October 2025. Select an account to find out what the new rate will be. Fixed rate accounts are not affected.

What is a Children’s Saver account?

It's a type of savings account for a child that’s 0 to 17 years old. It's a safe place to keep their money – for example, pocket money and birthday gifts.

The account earns interest so they can watch their savings grow and start learning how to manage their money.

Who can open a Children’s Saver account?

To open an account for a child

You must be at least 18 years old. You do not need to be related.

To open an account for you

You must be 16 or 17 years old.

What happens when a child turns 18?

We'll transfer the Children's Saver to an easy access savings account. We'll let you know the full details at least 14 days before this happens.

If someone else opened the account for the child (for example, a parent), they will be removed from the account.

Do children pay tax on their savings?

They could, as children are taxed in the same way as adults. However, most children do not earn enough to pay income tax on their savings.

A parent or step-parent may need to pay tax. This is only if the money they give to the child earns over £100 interest in a tax year. The interest will count towards the parent or step-parent's Personal Savings Allowance.

This is not the case for money given by a grandparent, other relatives or friends. Visit GOV.UK for more information.

Is a Children’s Saver account right for me?

It might be right for you if:

you want to take money out whenever you want
you’re comfortable that your interest rate could change.

It's not right for you if:

you want an interest rate that will not change
you want to apply online.

The content on this page is for reference. It is not financial advice.

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