CHILDREN SAVINGS ACCOUNTS

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There are several different types of children’s savings accounts available so it is important to ask yourself what your priorities are for opening a Children's savings account. Do you want a high interest rate? Easy Access? Or do you wish to tie your child's money up for a fixed term? Children's savings accounts have age restrictions to their application policies, which usually means your child must be under the age of 16 to be eligible. Other restrictions to bear in mind is if your child is under 7 years old, the account will need to be opened and administered by a parent or guardian on the child's behalf. See below a list of Children’s Savings Account providers for you to compare. Which Way To Pay gives you information on interest rates, age restrictions and withdrawal policies.

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If you wish to speak to someone: Contact Us or Enquiry Line: +44 (0) 207 386 5300

PROVIDERACCOUNT

ACCOUNT

Account name

TYPE

TYPE

Account type

INTEREST AER

INTEREST AER

Annual Equivalent Rate

INTEREST GROSS

INTEREST GROSS

Gross interest is the annual rate of interest which is paid without the deduction of lower rate tax to eligible individuals and certain organisations

PAID

PAID

When the account pays out

ACCESS

ACCESS

How account can be accessed

MIN INCOME

MIN INCOME

Minimum amount in account

CONDITIONS

CONDITIONS

Conditions for investor

WITHDRAWAL ACCESS

WITHDRAWAL ACCESS

Where you can withdraw money from

FEATURES

FEATURES

Account features

MORE INFO

Shepherds Young Saver Plan
Shepherds Young Saver Plan

Shepherds Young Saver PlanChildrens AccountDependent on investmentDependent on investmentMaturityOnline. Post, Tel£0Under 16 years of ageUp to 25% of the value when the Child reaches 11 years oldFeatures

Features

Free Banking: Yes
Debit Card: No
Cheque Guarantee Card: No
Standing Orders: No
Direct Debit: No
Overdraft Facility: No
Account Manager: No

Due to the flexibility of the plan, you can choose a premium to suit you. If your circumstances change you can increase or decrease your premiums up to a maximum of £100 and a minimum of £7.50 a month, without penalty.

Shepherds Young Saver Plan
£30 Love2Shop gift card when you take out a plan today. Give your children a real head start. Our Young Saver Plan savings account lets you save up to £1200 a year TAX-EXEMPT with no tax to pay on the final lump sum and sickness benefits of up to £400 a month if your child is ill for 4 weeks or more. DETAIL INFORMATION >>Services

Services

At age 11 the parent/guardian may, on behalf of the child, withdraw up to 25% of the value of the child’s fund without reducing the value of the sickness benefit.


Advantages

Advantages

1. Flexible savings - Save from as little as £7.50 right up to £100 a month and vary your premiums to suit your circumstances.
2. TAX-EXEMPT growth and lump sum - You won't have to pay a penny in tax on the growth of the savings fund or on the final lump sum payout.
3. Sickness benefits for peace of mind - After the child's 5th Birthday, the parent can claim up to £400 a week in benefits to help cover the costs, if the child is ill for over 4 weeks.
4. You can make a withdrawal at age 11 - While the plan is designed to run for at least 10 years, parents or guardians have the option of withdrawing up to 25% of the fund when the child reaches age 11.


Disadvantages

Disadvantages

1. You may get back less than you have paid in
2. Early encashment penalties, which would reduce the amount of the final payout
3. Bonus rates vary from year to year depending on the performance of our investments and the amount of sickness claims experienced. In some years we may not pay out any at all
4. If money is taken out at age 11, this will reduce the amount the child receives at the end of the plan

Scottish Friendly Child Bond
Scottish Friendly Child Bond

Child BondChildrens AccountVariesVariesMonthly, Annual, End Of TermOnline, Tel, Post£0Invest for a child who is under 16Minimum term 10 yearsFeatures

Features

Free Banking: Yes
Debit Card: No
Cheque Guarantee Card: No
Standing Orders: No
Direct Debit: No
Overdraft Facility: No
Account Manager: No

The Child Bond is the property of the child and you can be sure they’ll appreciate the extra money when they’re older.

Scottish Friendly Child Bond
Did you know you’re allowed to invest up to £25 per month tax-free for any child, resident in the UK, with a friendly society such as Scottish Friendly? The Scottish Friendly Child Bond allows you to put away a small amount of money every month for a special child in your life and could provide them with a tax-free lump sum to help them take their first footsteps into adult life - buy their first car or help them get to university. It's a tax-free with-profits plan, which runs for a minimum of 10 years, which you can take out for any child under 16. DETAIL INFORMATION >>Services

Services

Did you know you’re allowed to invest up to £25 per month tax-free for any child, resident in the UK.


Advantages

Advantages

1. Invest £25 a month tax-free for 10 years or more.
2. The bond's payout will be related to the performance of the assets within the Scottish Friendly With-Profits fund which includes the stock market, bonds, cash and property.
3. The child gets a guaranteed minimum cash sum at the end of your selected term.
4. A small amount of life cover for the child is automatically included as a condition of the tax benefits.
5. The bond is the property of the child at all times.


Disadvantages

Disadvantages

1. The child could get back less than you've paid in and if cashed in within the first 2 years, the child will get nothing back.

2. The amount of the guaranteed minimum cash sum depends on how much is paid in and the length of the savings period. It will initially be less than the amount invested over the investment term.

If you wish to speak to someone: Contact Us or Enquiry Line: +44 (0) 207 386 5300

Compare Childrens Savings Bank Accounts

Save for your children’s future with a Savings Account

Why the need for saving?

People put money away for any number of reasons. You might want to save for something in specific like a house, car, a holiday or wedding, your children’s future. It could be that you want to put some money way so you are covered should anything unexpected happen like you lose your job or need to pay for emergency home or car repairs.

If you want to put money aside then a savings account is where you can safely put your money, where it will earn interest over time. Savings accounts are bank accounts that people use, first and foremost, for keeping excess money safe. Savings accounts are a really easy way of growing your personal fortune and there is little risk involved.

The interest rates

One of the most important factors to consider is the interest rate that you will earn on your money and this should be priority. You need to shop around for a savings account that offers the best interest rates. Think about whether you want a fixed interest rate or if you don’t mind for it to vary. You may also be given the decision as to whether you want the interest paid monthly or annually.

Finding the right account for your money

You need to find an account that suits you so you will get the most out of your money. When choosing an account consider firstly how much you want to save for, for how long and how much money you can afford to save on a monthly basis. Also watch out for any fees for using the account as some providers may charge you for withdrawing cash from a cash machine or an annual fee just for using the account.

Make sure you compare different savings accounts before you decide on the right one for you. Use the table above to help you.

Putting money aside for your children is an important thing every parent should think about doing. With the cost of education on the rise and the enormous deposit required to get on the property ladder, now has never been a more appropriate time to start. With the vast array of providers on the market it is important that you choose the best provider and account for your money.

Like adults, children are entitled to earn a certain amount each year without paying tax. This means they will earn interest on their savings account tax free up to a certain number. There is some paperwork you will need to complete to ensure that it is tax free so enquire about this before you open your account. To ensure you earn the best interest rate on your children’s money you should ensure that you do your research thoroughly so you get the best interest rate available.

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