Children's Savings Guide

Children's Savings Accounts Start Their Money Journey Early.

Learn how children's savings accounts work in the UK, compare easy access and regular savings options, understand Junior ISAs, and explore the tax and access rules parents and families should know before saving for a child.

Explore Children's Savings → View Savings Guides
✓ UK savings information ✓ Junior ISA guidance ✓ Tax rules explained
Parent planning savings for a child
2026/27 Junior ISA limit £9,000

The annual Junior ISA subscription limit for the 2026/27 tax year.

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Start small, save regularly Build a long-term habit
Saving For Children

Why start a children's savings account?

Saving for a child can help create a financial foundation for future costs while also giving children an opportunity to learn how money works.

Children's savings accounts are offered by banks and building societies and can work differently depending on the child's age, who manages the account, whether withdrawals are allowed and whether regular deposits are required.

Some families prefer a flexible children's savings account for money the child may need sooner, while others may consider a Junior ISA when the aim is long-term saving until age 18.

Family saving money for a child's future
Child learning about saving money
Main Options

Children's savings options explained

The right account depends on how long you want to save, how much flexibility you need and whether the money should remain locked until the child reaches adulthood.

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Easy Access Children's Savings

Designed for flexibility, these accounts can allow parents or children to deposit and withdraw money according to the provider's account rules.

  • Flexible access may be available
  • Useful for shorter-term goals
  • Often simple to manage
02

Regular Children's Savings

Regular savings accounts encourage monthly deposits and may offer a higher interest rate in exchange for following contribution conditions.

  • Monthly saving structure
  • May have deposit limits
  • Withdrawal rules can apply
03

Junior ISA

A Junior ISA is a long-term tax-free savings or investment account for eligible children under 18.

  • £9,000 2026/27 allowance
  • Cash or stocks and shares
  • Normally inaccessible until 18
Parent considering a Junior ISA for a child
Junior ISA

A Junior ISA is built for long-term child savings

Junior ISAs are tax-free savings or investment accounts for eligible children under 18. There are two types: Junior Cash ISAs and Junior Stocks and Shares ISAs. A child can have one of each, subject to the overall annual Junior ISA allowance.

In the 2026/27 tax year, the Junior ISA allowance is £9,000. Parents or guardians with parental responsibility can open a Junior ISA for a child under 16, while 16 and 17-year-olds can open one themselves.

Eligibility The child generally needs to be under 18 and living in the UK.
2026/27 limit Up to £9,000 can be paid into a Junior ISA during the tax year.
Money belongs to The Junior ISA is held in the child's name and the money belongs to them.
Access The child normally cannot withdraw the money until age 18.
Junior ISA Types

Cash or investments? Understand the difference

A Junior ISA can hold cash savings or investments. The two options have different characteristics and levels of risk.

Lower investment risk

Junior Cash ISA

A Junior Cash ISA works more like a tax-free savings account. Interest earned within the Junior ISA is not taxed.

  • Cash-based savings
  • No tax on interest within the JISA
  • Money normally locked until age 18
  • Suitable for long-term cash saving
Investment risk applies

Junior Stocks & Shares ISA

Money is invested in assets such as funds, shares or bonds. Investment values can rise and fall, so the child could receive less than the amount originally invested.

  • Long-term investment approach
  • Investment gains can be tax-free
  • Market values can rise or fall
  • Consider time horizon and risk carefully
Future Goals

What could you save for?

Children's savings can be used for many future goals. The appropriate account depends on when the money may be needed and whether access during childhood is important.

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Education and training Build savings towards future education, training or other learning-related costs.
🚗
Driving and transport Long-term savings could help with future driving lessons, tests or transport-related costs.
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First adult milestones Savings may provide a financial starting point when the child reaches adulthood.
🎓
University or early career Saving early can create a pot for future education or early adult expenses.
Young person planning future financial goals
Parent reviewing tax rules for children's savings
Children's Savings Tax

How is children's savings interest taxed?

Children generally have the same Income Tax Personal Allowance as adults. However, special rules can apply when money has been given to a child by a parent.

If money given by a parent produces more than £100 of interest in a tax year, the parent can be liable for tax on the interest above that threshold. The £100 rule does not apply to money given by grandparents, relatives or friends, and it does not apply to Junior ISAs or Child Trust Funds.

Important £100 parent-gift rule HMRC states that if a child receives more than £100 of interest in a tax year from money given by a parent, the interest is generally treated as the parent's income for tax purposes. Always check current HMRC guidance for your circumstances.
Before Opening

What should parents check?

Don't choose a children's savings account based only on the headline interest rate. Look at the complete account terms.

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Interest rate

Check the advertised rate, whether it is fixed or variable, and whether conditions apply.

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Deposit limits

Find out whether there are minimum deposits, maximum balances or monthly contribution limits.

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Access rules

Understand who can withdraw money, when withdrawals are allowed and whether parental controls apply.

✓

Protection

Check whether the provider is authorised and whether eligible deposits are covered by the relevant protection scheme.

Parent Checklist

Compare children's savings accounts with a clear checklist

Before opening an account, compare the features that actually matter for your child's age, your savings goal and your desired access.

✓ Compare the current interest rate and AER.
✓ Check minimum and maximum deposits.
✓ Understand who controls the account.
✓ Check withdrawal and access conditions.
✓ Consider whether the money is needed before age 18.
✓ Review tax treatment and account protection.
Parent comparing children's savings account options
Explore More

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Fixed Rate Savings

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Frequently asked questions about children's savings accounts
Frequently Asked Questions

Children's savings questions answered

Clear answers about children's savings accounts, Junior ISAs, tax rules, access and choosing an account.

A children's savings account is a bank or building society account designed for saving money for or by a child. The features, access rules and age requirements vary between providers.
A standard children's savings account can offer access to money during childhood, depending on its terms. A Junior ISA is specifically designed as a long-term tax-free account and the money normally cannot be withdrawn until the child turns 18.
The Junior ISA annual subscription limit is £9,000 for the 2026/27 tax year. This limit applies across the child's Junior Cash ISA and Junior Stocks and Shares ISA.
In many cases, grandparents and other family members can contribute to a child's savings. Junior ISAs also allow anyone to pay money into the account, subject to the annual subscription limit.
Normally no. Money in a Junior ISA cannot be withdrawn until the child turns 18, except in limited circumstances set out in the rules.
Children can have tax-free savings within their available allowances, but special rules apply when money has been given by a parent. Interest within a Junior ISA is tax-free.
The age depends on the account provider and product. Some children's savings accounts allow children to manage accounts themselves from a certain age, while Junior ISA rules allow the child to take control at age 16.
They have different risk characteristics. A Junior Cash ISA holds cash, while a Junior Stocks and Shares ISA invests in assets whose value can rise and fall. Investment values are not guaranteed.
Smarter Family Saving

Give their savings room to grow.

Explore more GrowthSmartly savings guides to understand account types, interest rates, tax rules and long-term saving options for your family's financial goals.

Explore Savings → Regular Savings Easy Access Savings
Important: GrowthSmartly provides general financial education and information. It does not provide personalised financial, investment, tax or legal advice. Savings rates, eligibility criteria, tax rules and account conditions can change. Always check current provider terms and official UK guidance before making a financial decision.
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