Compare Children's Savings Options
Children's savings accounts offer a great way of preparing for your child's future, building up a nest egg which could be used to help them buy their first home or go to university, helping give them a head start in life.
When it comes to children's savings accounts interest rates can be higher as plans aim to deliver a return over the long term, while some returns may be tax free.
Children can save and earn interest tax free within their annual allowance, as children normally do not earn over their annual allowance each year. A R85 form can be filled out to ensure tax taken on their own savings is refunded or tax is not taken off at all.
However, when a parent gives savings to a child any interest over £100 a year is treated as the parents income and taxed. This is known as the £100 rule.
There are various choices available for children's savings, although Child Trust Funds - which were supported with government savings vouchers - are no longer available, a new tax-efficient Junior ISA is now available (launched November 2011).
Other options include savings accounts specifically designed for children and investment plans which aim for long term growth.
Use the tables below for a selection of saving plan options for children: