Minimum age criteria for opening a bank account?

B0bbyEwing

Until recently I always believed the only criteria was that you had to be alive (so basically a new born is good to go).

I recently acquired a niece & having an interest (no pun) in money, investing etc.  while my sister is busy with other motherly things I started looking in to how to go about getting her set up with an account so got to Googling "best child accounts" & similar search terms.

I was surprised that one link I went to which listed off a good number of accounts actually, all said best for ages X-Y where X was about 6 years old in every single case. This made me wonder if an account can be opened for a baby & maybe I was wrong when I assumed it could be. I suspect the parent/s would be the ones who have to do the opening but even still.

To take the question a little further (though maybe this may be better asked in the savings forum) - any recommendations on junior S&S ISA / junior SIPP providers? After a discussion, I want to contribute in to a SIPP for them, my mother wants to contribute in to a S&S ISA for them & money will also go in to a regular account (will be a savings account though probably need to have a current account open alongside it). 
Standard savings account I can choose myself. Junior SIPPs & S&S ISAs is a new thing to me. Is it just really a much of a muchness thing where there's a pretty insignificant difference between what's available? Is anything better (cheaper) than Fidelity really?

Band7

You are right, questions about SIPPs and (J)ISAs should be asked over on the Savings & Investment Board. There are two lots of charges to watch out for - the platform, and what you are actually holding on the platform. Not sure Fidelity is the best platform choice, and in any case, both a JISA and a SIPP need to be opened by a parent or a legal guardian. But ask over on the other board.

For other kids savings accounts, see https://moneyfacts.co.uk/savings-accounts/childrens-savings-accounts/?quick-links-first=false. Again, parents need to open them, usually in person, and there are tax implications to be aware about. Also a subject best discussed on the other forum.

If you are after current accounts for kids, you'll have to wait a few years until the niece is a little older.

ForumUser7

If you select full search, and enter 0 as the child’s age here it brings up several options: https://moneyfacts.co.uk/savings-accounts/childrens-savings-accounts/?id=null&business-type=16&activity-type=null&investment-amount=1000&investment-type=1&account-types=32&interest-paid-frequencies=null&terms=null&account-opening-methods=null&account-management-methods=null&notice-periods=null&include-notice-period=true&include-term=true&age=0&has-withdrawal-restrictions=2&existing-customers-only=2&is-shariaa=2&joint-account-only=2&quick-links-first=false

Best easy access/current accounts that I think a 0 year old would be eligible for based on the account summary, and paying above 3% appear to include: 

• https://www.santander.co.uk/personal/current-accounts/123-mini-current-account
• https://www.kentreliance.co.uk/savings-accounts/childrens-savings-account
• https://www.leedsbuildingsociety.co.uk/savings/childrens-savings-accounts/ronnie-the-rhino-youngsaver/
• https://www.leedsbuildingsociety.co.uk/savings/childrens-savings-accounts/dinosaver/

On the above link, higher paying regular savers and fixed rate bonds seem to be available too - but you’d need to check account summaries before applying in case moneyfacts put in any age data wrong.

An operator would be needed for the accounts, obviously I suppose. They are probably manage via post but you’d probably want to check individually if any were to suit.

Marchitiello

Aside of the “investment options” child are eligible for, some “easy access” saving account can also be opened. I have three kids, youngest is 6, and all three were started on the RBS/NatWest first saver. When I opened the one for my first born, they had to be 7yo minimum, the parent would open it in trust with the child, but it would be a fully independent account etc. 

However, they have now removed the wording about needing to be 7 plus, and have tried to open one for my 6yo, and was accepted. The difference is that the account actually sits in my account list (the other two do not) and I can managed it fully via online banking.

It comes with a game app and piggy bank to help children understanding about saving, and we use it as a place to deposit money, save to then buy bigger things they may want.

Santander Mini 1-2-3 was also with a min req of 11yo (and from 13yo could be open independently by the child online) but I cannot see the 11yo min age mentioned now on the site.

My personal view is that JISA or other investment are best done with the view of making the money available to the child once is 18, potentially as a Uni funds or first car, house deposit etc.. 

Saving account/current accounts (mostly from 11yo) are a way to teach kids about how to manage money and build a relationship record with the bank, so one should aim to do both as and when applicable. 

B0bbyEwing

Marchitiello said:

My personal view is that JISA or other investment are best done with the view of making the money available to the child once is 18, potentially as a Uni funds or first car, house deposit etc.. 

Saving account/current accounts (mostly from 11yo) are a way to teach kids about how to manage money and build a relationship record with the bank, so one should aim to do both as and when applicable. 

Agreed.

My sister, the baby's mum, wanted to open an account for baby & put money aside. It was my suggestion for the Junior SIPP & Junior ISA but not to exclude any of the 3 as I believe they all serve their purpose.

Mother wanted to initially dismiss any account child could access before/at 18 but I said what about when they're a teen & want to spend. Aside from that, they need to be educated as far as good savings habits go & then you hope the groundwork doesn't result in the money being peed down a drain on their 18th birthday.

My only request with putting in help on this was that child is not informed about the SIPP and probably even the S&S ISA until such time they show they're money savvy. My concern is that they'll be lazy - "well I have that in reserve so I don't need to bother right now". Get them putting their own money aside as though they think they're starting from scratch. 

Eventually they'll have to be told about it anyway but hopefully it's after they've shown they're making a start tackling saving themselves & it's then a case of ... oh by the way, surprise. 

Band7

The (J)SIPP they couldn't get at age 18. It would be age 57 or higher.

eskbanker

B0bbyEwing said:
My only request with putting in help on this was that child is not informed about the SIPP and probably even the S&S ISA until such time they show they're money savvy. My concern is that they'll be lazy - "well I have that in reserve so I don't need to bother right now". Get them putting their own money aside as though they think they're starting from scratch. 

Eventually they'll have to be told about it anyway but hopefully it's after they've shown they're making a start tackling saving themselves & it's then a case of ... oh by the way, surprise. 

Beneficiaries of Junior ISAs will be informed of this fact around their 18th birthday, regardless of parental wishes, when the accounts are converted to adult ones - parents could obviously intercept mail, etc, but would be denying the child their legal rights to access the money at that stage, so need to accept that if they wish to retain control in a legal manner beyond the child's 18th birthday then JISAs aren't an appropriate vehicle and they should save/invest in their own names instead....

B0bbyEwing

eskbanker said:

B0bbyEwing said:
My only request with putting in help on this was that child is not informed about the SIPP and probably even the S&S ISA until such time they show they're money savvy. My concern is that they'll be lazy - "well I have that in reserve so I don't need to bother right now". Get them putting their own money aside as though they think they're starting from scratch. 

Eventually they'll have to be told about it anyway but hopefully it's after they've shown they're making a start tackling saving themselves & it's then a case of ... oh by the way, surprise. 

Beneficiaries of Junior ISAs will be informed of this fact around their 18th birthday, regardless of parental wishes, when the accounts are converted to adult ones - parents could obviously intercept mail, etc, but would be denying the child their legal rights to access the money at that stage, so need to accept that if they wish to retain control in a legal manner beyond the child's 18th birthday then JISAs aren't an appropriate vehicle and they should save/invest in their own names instead....

Very true, which is why I made it clear that the ISA money could in theory go down the drain on the 18th birthday. 

I myself learned about saving only through doing exactly that - being given money over the years and also working through holidays & weekends only to blow the lot. It was a huge amount to me at the time & it was an awful feeling when I realised it'd all gone. I felt terrible for having spent everything my parents had set aside & also what I'd worked for (moreso what they'd set aside tbh) ... but it flicked a switch & from then on I became a saver rather than a spender to the point I was able to save 30% of a house deposit on my own wage & 35% when combined with my wife and that was through earning not so much a year either.

Obviously I don't think that's the way people should learn but it's how I learned. 

So yeah, I've put it to my sister that she needs to be prepared for that money to disappear in an instant. If that's not what she wants to do then like you say, it needs to be in her own name.