Compare Child Savings Accounts
It's never too soon to start investing in your child's future, so see the table below to compare some of the different savings options for children and grandchildren. The sooner you open a child savings account for your child, the bigger a lump sum they will have when they grow up, which could go towards driving lessons, a wedding, or a deposit for a house. Children also benefit from a personal tax allowance, which means that all income up to a certain limit is not taxable.
Interest rates on children’s accounts are usually higher, so they are a good way of saving for your child’s future. The range of child savings accounts available includes:
Children's Bonus Bonds from National Savings and Investments (NS&I): Tax-free interest with an additional bonus if the money remains untouched for five years.
Index-linked Savings Certificates (NS&I): Invest from £100 to £15,000 for three or five years. The value of the investment is guaranteed to remain equal with inflation, the interest rate is guaranteed and tax free.
Premium Bonds (NS&I): Children can own between £100 and £30,000 worth of Premium Bonds which are entered in a prize draw every month for tax-free cash prizes.
Junior Childrens ISAs: When a child reaches 16 years old they can open a tax-free cash ISA, or until then you can open one on their behalf.
For investment related options for child saving see below: