Best Children's Savings Accounts - February 2020

With so many savings accounts available for children, it can be hard to decide which one is right for your circumstances. In this blog I set out two different types of savings and the current highest rates available which I could find at the time of writing.

I’m going to focus on regular savings and instant access accounts in this blog. For more information on Junior ISAs, read this article. I will write a separate blog on children’s pensions so make sure you subscribe so you don’t miss it.

Regular savings accounts:

Below are three savings accounts which offer different rates on regular savings (links to accounts are at end of blog)

* This is based on you having an existing account with them, otherwise the rate is 2% p.a.

When choosing an account, make sure you consider the long-term rate and not just the headline initial rate. As the chart illustrates below, despite the high initial rate offered by Halifax (blue line), the projected savings (based on current rates) is higher from Nationwide (yellow line) and Virgin Money (green line).

This chart assumes £100 is saved each month and is based on current rates at the time of writing (5 February 2020).

I’ve also added a line assuming you invested those savings (grey line**) rather than put them into a savings account. The potential return from investing could be much greater than a savings account and should be considered by parents saving for their children from a young age. I appreciate that investing is new to a lot of parents and hence have written a blog to make it easy for parents to build confidence for themselves and their children. Take the time to read this blog (link) to learn more.

** this assumes an investment return of 7% p.a. based on historical averages. Actual investment returns could be higher or lower than this.

Instant access account:

The rate is relatively attractive up to £3,000. If you have more than £3,000 then you could consider moving this money to a regular savings or investment account.


Make sure you consider the long term rates and deposit limits when selecting an account. If you are being offered high rates in the short term or on small deposits this might not lead to the best long-term outcome.

Lastly, spend some time considering the benefits of investing as the return is expected to be materially higher than those of a savings account as illustrated in the chart above. If you are concerned about the risks of investing then a good place to start is to read this blog on the risks of investing.

Links to savings accounts:

Please read the caveats to this blog before applying for any account described here.

Caveats to this blog:

  • The information in this blog does not constitute financial advice, always do your own research on top to ensure it's right for your specific situation.

  • The above is based on rates I could find at the time of writing (5 February 2020).

  • Rates and terms vary over time so please make sure to check before applying.

  • If you click on a link above we are not responsible for content on those sites.

Thanks for reading!


Other related blogs: