Best children's savings account for 2025 with families able to earn 5.5%
Most children will start to learn about money from an early age. For parents, teaching them about it when they begin to show an interest can be a good way to set them up for the future.
There are lots of age-appropriate ways to do this, but one of the easiest is to let them have the experience of managing finances themselves.
For many, a great place to start is with a children's saving account. This is a bank account specifically designed for children – with lots of parental controls – where they can begin managing usually small amounts of money.
Some of these savings accounts offer comparable or even better interest rates than the mainstream offerings for adults. This means a children's savings account may not just be a good learning tool for your child, but also a good place to start saving funds that they can use later in life.
However, other accounts for children pay very little interest, or may come with unfavourable conditions attached. Because of this, it can be a good idea to shop around for the best option for you and your child.
Here's are the best children's savings accounts in 2025 - rates are correct at time of publishing but may be changed or withdrawn at any time.
Nationwide's FlexOne Saver (5%)
This offering from popular building society Nationwide is an easy-access account which offers a top rate of 5 per cent on up to £5,000. This is a better interest rate than most normal accounts currently on the market, which are sat at around 4.5 per cent on average.
Children aged 11 to 17 can apply for the account, however parents can only make an account online for those aged 13 and up. You must also already have a Nationwide FlexOne current account to open one of the bank's accounts for a child.
This easy-access children's saving account from Kent Reliance offers a slightly lower 4.3 per cent interest on savings. However, it also allows for a much higher limit of £25,000 to be saved.
The account also has no lower age limit, making it a good option for parents who want to start their children off earlier, and it will also not provide account holders with a debit card.
This children's saving account from HSBC offers a solid 5.0 per cent interest on up to £3,000 for children aged seven to 17. However, it is quite unique in that there is no maximum limit on how much can be saved in the account.
Everything after £3,000 will instead accrue 1.75 per cent interest. This could be a good option for those who don't want to worry about hitting an upper limit on their account, however this interest rate can easily be beaten by many other options.
Halifax Kids' Monthly Saver (5.5%)
Unlike the previous accounts, this children's savings account from Halifax is a regular saver, meaning smaller amounts need to be paid in every month. This must be a minimum of £10, and maximum of £100.
Crucially, money can also not be taken out until the account is closed. This makes it a good option for parents who want to hold on to the money in the account until their child reaches a certain age. It's important to note, however, that the eligible age for this account is 0 to 15.
But those who are happy with the slightly lower level of flexibility offered by Halifax on their children's saving account will be rewarded the best interest rate on the market, at 5.5 per cent.
How else can young people save money?
Junior ISA
Another option for parents looking to set their child up with a savings account for the future is a Junior ISA (Jisa). This is an individual savings account (Isa) that is designed specifically for children.
An Isa is a tax-efficient pot which can hold cash or investments. Account holders can add up tot £20,000 a year to their account/s (combined if several) and they won't be taxed on interest, capital gains or dividend income generated.
Junior Isas work much the same way, except with a lower annual limit of £9,000. You can learn more about Junior Isas by reading The Independent's handy guide.
Turning 18
Once your child turns 18, they become responsible for their own finances. This can be a daunting step for a young person as they reach adulthood, as they take the money know-how you bestowed them out into the world.
Presented with a plethora of options, it can be hard, at this point, to know what to do with money that may have been in a children's savings account or Jisa.
One simple option is to shop around for the best normal savings accounts or Isas on the market at that time, and transfer the money to a new account. Many banks also offer student-orientated current accounts with easy-to-open savings accounts, if this is the route your child chooses to go down.
At age 18, people can also open and begin saving in a Lifetime Isa (Lisa). This is an ISA in which you can put up to £4,000 a year, with the government matching this by 25 per cent (adding up to £1,000).
This is an incredible 'interest rate' but it comes with a catch: the funds must be spent on buying your first home (unless you reach 60+ or become terminally ill). The property must also cost £450,000 or less so be sure it suits your needs.
Whichever your chosen route for the future, starting to invest in your children and teaching them about the value of money is a great way to help them build wealth for the long haul.
When investing, your capital is at risk and you may get back less than invested. Past performance doesn't guarantee future results.
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