The nine best children’s savings accounts 2020 from Halifax to Barclays
THINKING of opening a children's savings account for your little one? We round-up the best rates currently available.
Savings accounts for children work in a similar way to adult ones though interest rates tend to be higher.
But with so many different options available, from regular savings accounts and easy-access options to Junior Isas, you may be wondering where to begin.
Here are the best-paying accounts currently available on the market, according to comparison site .
What are the best children's regular savings accounts right now?
Regular savings accounts require parents to put a minimum amount of money away monthly.
Typically it ranges from £5 to £100 a month for a year.
Rate: 4% fixed for 12 months
Min deposit: £10 per month
Max deposit: £100 per month
Balance after depositing £100 a month for 12 months: £1,224 (includes £24 in interest)
- Barclays Children's Regular Saver -
Rate: 3.5% fixed for 12 months (this drops to 1.5% if you make a withdrawal)
Min deposit: £5 per month
Max deposit: £100 per month
Balance after depositing £100 a month for 12 months: £1,222.75 (includes £22.75 in interest)
- Saffron Building Society Children's Regular Saver -
Rate: 3% variable fixed for 12 months
Min deposit: £5 per month
Max deposit: £100 per month
Balance after depositing £100 a month for 12 months: £1,219.46 (includes £19.46 in interest)
Top tips for teaching kids to save
MAKE saving fun - try these tips to get your kids started:
- Match your children’s savings on a pound for pound basis
- Get your kids to put some of their pocket money into a piggy bank
- Then take them to the bank every month to pay it in – get them used to the habit of saving and seeing their balance grow
- Draw a chart on their wall and colour it in as the balance grows to keep them interested and so they can monitor their progress.
What are the best easy-access savings accounts right now?
Easy-access savings accounts are a good choice if you want your child to be involved and learn about saving.
Rate: 3% variable
Interest earned on £1,000 balance over 12 months: £30
- HSBC Children's Regular Saver -
Rate: 2.5% variable on first £3,000, 0.25% after this amount
Interest earned on £1,000 balance over 12 months: £25
- Bath Building Society Junior Saver -
Rate: 1.8% variable
Interest earned on £1,000 balance over 12 months: £18
Rate: 3.25% variable
Interest earned on £1,000 balance over 12 months: £32.50
- Coventry Building Society -
Rate: 2.95% variable
Interest earned on £1,000 balance over 12 months: £29.50
- Tesco Bank -
Rate: 2.75% variable
Interest earned on £1,000 balance over 12 months: £27.50
Savings accounts are not the only way you can save for your child's future.
By saving into a pension from the time your child is born you could make your child a millionaire by the time they are 64 with just £60 a week.
The Sun took a look at the best-paying accounts on the market which will give you the most bang for your buck.
And here are the best personal loans 2020 from Tesco Bank to Santander.