Children's Bank Accounts/Savings Account

youngie70

Hi  - I am just looking to set up a bank account for my twins daughters and wondered whether there were any views on whether it is best to set up a traditional bank account that pays some interest or whether it is better to set up a instant easy access account that pays a bit more interest - do you get a debit card with an instant access account? ThankS

eskbanker

Horses for courses - establish what it is that you/they want and then narrow down choices from there, i.e. if a debit card is a requirement then pick from accounts that offer those.  Age will also affect which options are available to them....

Stuart_W

As Eskbanker says, work out your/their requirements. Is it mainly an account for you to save up for their future, or a spend-and-save type account for them? For the former, interest rate should be the main driver, for the latter it should be the access features they need (unless balance will be significant).

Band7

Depending on their age, each of them could / should have both, a current account and a savings account. It is good practice to keep your savings separate from your day-to-day spending money.

ForumUser7

If you are looking to get both a savings and a current account for them, the HSBC MyMoney package comprising the HSBC MySavings (currently paying 3.50% AER) and HSBC MyAccount (paying 0.00% AER) may be something to consider. I cannot recommend them as I have found their customer service to be quite awful, and they give a lot of misinformation (even more so than other high street banks) but they do at least pay a good rate, and after asking several different agents you tend to eventually get the right answer.

As I don’t know their ages, I cannot advise re debit card vs cash card, or app access etc. but if you check the product page it should all be there. https://www.hsbc.co.uk/current-accounts/products/children/

Bridlington1

It depends greatly on the circumstances.

You may want to look a JISAs if you/other family members want to save some money aside for them. The money is locked in until the twins are 18, but you can easily switch if the interest rate starts to lag behind its competitors. See:
https://moneyfacts.co.uk/isa/junior-isas/?quick-links-first=false

If you are thinking of saving for them long term, you may also want to consider a junior stocks and shares ISA. Again this is locked in until the twins turn 18.

As for current accounts most providers will not let you open one until the child turns 11. If the twins are aged over 11 I would lean towards the HSBC account mentioned by @ForumUser7 based on the interest rate. If you don't fancy HSBC there is also Santander's 123 mini account. You can open it if the twins are under 18, but it must be opened in trust if they are under 13. It pays a tiered interest (see below).

Marchitiello

As everybody else said, age will be an important factor.

all my kids have CTF/JISA since they’re were born, opened an RBS saving account at 7 yo (last born not yet 7), and child current accounts at 11 with a debit card, so that they can receive their weekly allowance directly via Bank Transfer and have a debit card to access it and if needed spend online (e.g. PS store). 

Edit to add:

if you are an HSBC premier customer, your children MyMoney accounts comes with some extra benefits, so another thing in their favour.

Also to note,  if you open the RBS saving account at 7 (which kids can access directly in branch with their Parents), once they have a child account with RBS as well, they can see and directly manage the saving account from the app (same for the NatWest equivalent accounts). With Barclays you can easily open the account via Barclays Video App. And for Santander, as others have said, probably better to open it after they turn 13 as it can be done online by them 

youngie70

Thanks Marchitello - that is very helpful

youngie70

Thanks also to Bridlington 1, FormUser7, Band7 and eskbanker

ForumUser7

Kent Reliance:

Following the recent Bank of England Base Rate increase, the rates on some existing variable savings accounts will increase on 18 November 2022. See below for our latest rates.

https://www.kentreliance.co.uk/interest-rates

Regular Savings Account Issue 9 -> 3.00%

Easy Access Account Issue 51 -> 2.75% (for balances above £1,000)

60 day notice account Issue 39 -> 2.85% (for balances above £1,000)

Demelza children’s savings account Issue 7 -> 3.25% (for balances above £10)