Children's Savings

With the rising costs of living and children's education, it is important to start saving as soon as possible for your child. With a plethora of child savings accounts around at the moment it is important to look around and make sure you are getting the most back from your child's savings.

Children's savings accounts work in a similar to adult savings accounts. There are different types of account:

Easy Access
Bonds or Term

Most children's savings accounts are easy access allowing money to be withdrawn without notice or penalty. Some accounts require notice to be given before a withdrawal, to allow a penalty-free withdrawal. These accounts normally offer a higher level of interest than easy access accounts. Bond accounts offer the highest interest but to receive this, the money invested normally has to be left in the account for a specific period. This could vary from 1 year, up to 5 years or some providers require money to be left until the child has reached a certain age.

There is no minimum age for a children's account to be opened, however most providers require a parent or guardian to open and run the account until the child is between 7 - 11 years old. Most accounts run until the child is 18 years old when, if not specified at the time, will be transferred over into an adult savings account.

To encourage a child to save their money many providers offer incentives when an account is opened. This can range from posters to vouchers to naming the account themselves. The idea behind this is to start to encourage children to take an interest in saving money. However, the gift is not the most important part of an account so look beyond it and find out what interest rate is offered on the account.


Children's Savings
Hedge Funds
Investment Bonds
Investment Trusts
National Savings
OEICS & Unit Trusts
Options & Futures
Savings Accounts
Spread Betting
Stocks & Shares
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