Best children’s savings accounts 2025: secure their future with high-interest options
The best savings account for children in the UK can earn up to 5.5% interest in 2025, helping parents build a financial safety net for their kids’ future. With rising costs and economic uncertainty, choosing a high-interest option like a Junior ISA or easy access account ensures tax-free growth and flexibility. This guide compares top picks, explains key features, and offers tips to find the ideal child savings account.
Types of children’s savings accounts
Children’s savings accounts come in various forms, each suited to different needs. The core insight is that Junior ISAs offer tax-free savings up to £9,000 per year, while easy access accounts provide liquidity without penalties.
Easy access accounts
These allow withdrawals anytime, ideal for short-term savings. Top easy access children’s savings accounts offer up to 5% AER (annual equivalent rate, the standard way to compare interest). Providers like Nationwide and Halifax often top the list for kids under 18, with no minimum deposit in many cases.
Fixed-rate bonds
For committed savers, fixed-rate bonds lock in rates for 1-3 years, currently up to 4.55% AER. They suit parents planning for specific goals like school fees, but early withdrawals may incur penalties.
Regular saver options
The best regular savings account for children encourages monthly deposits, yielding up to 7.5% AER on limits of £200-£400. These build saving habits but require consistent contributions to avoid rate drops.
Junior ISAs
Tax-free and accessible at 18, Junior Cash ISAs pay up to 5.5%. They’re the go-to for long-term growth, with the 2025/26 allowance at £9,000 annually.
Top high-interest picks for 2025
The standout choice for the best savings account for children UK is the Junior ISA from providers like Coventry Building Society at 5.5%, balancing growth and security. For flexibility, easy access from Halifax at 5% leads, per recent comparisons.
Best easy access (up to 5% AER)
- Halifax Kids’ Saver: 5% AER, no minimum, FSCS protected up to £85,000.
- Nationwide FlexOne Saver for Children: 4.5% AER, instant access.
Best fixed rates (up to 4.55% AER)
- Shawbrook Bank 1-Year Children’s Bond: 4.55% AER, £1,000 minimum.
- Close Brothers 2-Year Fixed: 4.2% AER for under 18s.
| Provider | Type | AER (%) | Min Deposit | Access |
|---|---|---|---|---|
| Halifax | Easy Access | 5.0 | £1 | Instant |
| Nationwide | Easy Access | 4.5 | £1 | Instant |
| Coventry BS | Junior ISA | 5.5 | £1 | At 18 |
| Shawbrook | Fixed 1-Year | 4.55 | £1,000 | Fixed term |
| First Direct | Regular Saver | 7.0 | £25/month | 12 months |
Data sourced from Which? best children’s savings accounts November 2025 and MoneySavingExpert top picks. Rates variable; check for updates.
Best for under 18s and Martin Lewis recommendations
For children under 18, accounts from HSBC or Barclays offer solid 4-5% rates with parental control. Martin Lewis highlights Junior ISAs for tax efficiency, recommending the highest AER options without fees. See our guide on the Martin Lewis best savings account for more expert insights.
How to choose the right account
Start by assessing your child’s age and savings goals: for under 5s, easy access works; for teens, fixed rates build discipline. Prioritise AER above 4% and FSCS protection.
Interest rates and AER
AER standardises comparisons, with 2025 highs at 5.5% for ISAs. Compare against the Bank of England base rate for value.
Tax implications
Children’s savings under £100 interest per parent are tax-free via the personal savings allowance. Junior ISAs avoid this entirely. Full rules at HMRC guidance.
Age and access rules
Most accounts require a parent or guardian to open for kids under 16. Under 18s can access funds, but ISAs lock until 18.
Provider comparisons
Use tools from Moneyfacts for real-time rates. For broader options, explore the best savings account in the UK.
Pros, cons, and tips for parents
Pros include compounded growth and financial education; cons are inflation risk and access limits. All UK accounts offer FSCS protection.
Maximising returns
Switch to higher rates annually; use regular savers for bonuses.
FSCS protection
Ensures up to £85,000 per person is safe if the provider fails.
Common mistakes
Forget tax rules or choose low-rate accounts. Always verify eligibility for under 18s.
Frequently asked questions
What is the best savings account for a child under 18?
For children under 18, the best savings account is often a Junior ISA offering up to 5.5% AER tax-free, as recommended by experts like Martin Lewis. These accounts allow parental contributions up to £9,000 yearly and grow until age 18. Unlike regular kids’ accounts, they shield interest from tax, making them ideal for long-term goals like university fees, though funds are locked until maturity.
How much interest can a child’s savings account earn in 2025?
In 2025, top children’s savings accounts can earn 5-7.5% AER, depending on type: easy access at 5%, fixed at 4.55%, and regular savers up to 7.5% on limited deposits. For a £1,000 balance, this could yield £50-£75 annually before tax. Rates fluctuate with the economy, so check providers like Halifax or Nationwide for the latest, ensuring FSCS protection covers your amount.
Are Junior ISAs worth it for children’s savings?
Yes, Junior ISAs are highly worthwhile for tax-free growth up to 5.5% AER, outperforming standard accounts for larger sums. They suit parents saving £9,000+ yearly, with funds transferable at 18. However, if you need access sooner, opt for easy access alternatives; weigh against personal savings allowance limits.
What are the tax rules for children’s savings accounts?
Children have a £100 tax-free interest allowance per parent, beyond which parental income may be taxed at higher rates. Junior ISAs bypass this entirely with tax-free status. For 2025/26, monitor HMRC rules to avoid surprises, especially if gifting over £3,000 annually.
Which UK banks offer the highest rates for kids?
Banks like Coventry Building Society and Shawbrook lead with 5.5% for Junior ISAs and 4.55% fixed rates. Nationwide and Halifax provide competitive easy access at 4.5-5% for child accounts. Compare via Which? for FSCS-backed options, focusing on AER and minimums for under 18s.
Can parents open a savings account for children under 5?
Absolutely, parents or guardians can open accounts for children under 5, typically as easy access or Junior ISAs with no age minimum beyond infancy. These build early habits, earning up to 5% AER on small deposits. Ensure joint control until 16, and choose providers like Post Office for simple kids bank accounts.
