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Best Bank Accounts For Kids in 2022
How do I teach my child financial responsibility? How do I teach my child to budget? How do I teach my 5-year-old money? Open them a Bank Account for Kids!
Financial skills are crucial to navigating life. As a parent, it’s essential to impart these skills in your children. Teaching your children financial skills helps them learn how to save, budget and spend money wisely.
As of October 2020, the average credit card debt per UK household was £2,177. The average total debt per UK household in the same month was £60,580. In total, people in the UK owe £1,688.8 billion.
From the statistics above, it’s clear that the current generation of adults does not know much about money. As a parent, you can take steps now and help the future generation avoid such mistakes and live financially fit lives.
One of the best ways to teach your children financial skills is by opening them one of the many bank account for kids.
In this guide, we explore the best bank accounts for kids…
Santander 123 Mini…
Santander 123 is the first of our recommended Bank Accounts For Kids…
You can now open a bank account for your child at Santander. The Santander 123 Mini is a current account for helping children learn financial responsibility. This account is available to children under 13 years, over 13 years but below 18 years. To be eligible, the child must be living in the UK permanently.
As an account holder, your child will enjoy benefits such as a monthly interest of 3% AER or 2.96% gross on available balance over £1,500. If the bank account has a balance between £1,000 and £1,499.99, it will earn an interest of 2% AER or 1.98% gross.
There is no monthly fee to maintain the account and the account holder has a choice of Santander’s contactless debit card or cash card.
The Santander 123 Mini current account is for children under 13 years. But a parent or guardian must open the account on behalf of the child. The trustee must be 18 years or over. He or she must have parental responsibility for the child.
If the young person is between 13 and 18 years old, he or she can open the account online. It only takes 10 minutes. Alternatively, the new account holder can visit the local branch and apply for a bank account.
If you are looking for the best way to teach your child how to save money, HSBC MySavings is your best bet. Also referred to as a Premier MySavings, the account is open to any child aged 7 to 17 years. Children can start saving from as little as £1 which makes this one of the best Bank Accounts for Kids in the UK.
Whether it’s money earned as wages from a part job or online job or pocket money, you can save it in the account. On balances up to £3,000, the account will earn an interest of 2.50% AER or 2.47% gross. For balances over £3,000, your money will earn an interest of 0.25% AER.
On the child’s 11th birthday, he will receive an HSBC Visa Debit Card. This card allows the account holder to shop in stores, online or withdraw cash at cash machines. Besides the Visa card, account holders can use cash books to withdraw money. To withdraw more than £50, the parent’s or guardian’s signature is always needed.
TSB Under 19s…
TSB Under 19s is yet another great choose for a Bank Account for Kids.
TSB is a commercial bank in the UK. As a subsidiary of Sabadell Group, TSB operates 536 brands in the UK. Launched in 2013, TSB can help you and your children make the most of your money. TSB offers Under 19s, a bank account for children between 11 and 18 years. With the bank account, your child can save money without lifting a finger.
Besides saving money, your child’s account will earn 2.50% AER or 2.47% interest on a balance between £1 to £2,500. For balances over £2,500, your child’s savings will earn 0.1% AER or gross.
Other benefits include:
- TSB Visa Debit Card for shopping online or in-store
- Free weekly balance alerts to your smartphone
- Regular statements to help you keep track of your money
- Mobile and internet banking access from age 11
- Telephone banking from age 16
To open a TSB account, your child must be between 11 and 18. If over 11 but under 15, a parent or guardian must be present. The parent or guardian must present two forms of ID and address. Children over 16 do not need a parent or guardian to accompany them. But they must present two forms of ID and proof of address.
Virgin Money Young Saver…
As one of the best bank accounts for kids, the Virgin Money Young Saver will teach your child how to save and manage money. Giving your children a head start to save for their futures helps them understand the value of money.
Children can save as little as £1 and up to £25,000. To open a Virgin Money Young Saver account, the child must be under the age of 16. Two adults who are residents in the UK must be named as trustees. Only one child can be named for every bank account alongside a suitable trustee.
When the child attains his or her 16th birthday, the account is automatically upgraded to an adult’s savings account. The minimum amount a child can withdraw is £1.
Lloyds Bank Under 19s…
If you’re a child or teen, the Lloyds Bank Under 19s can help you make the most of your money. Not only can the account help you get prepared for the future. But you can learn to manage your money. Your account will earn a variable interest of 0.50% AER or gross on balances between £ and £2,499.99.
The interest is usually paid quarterly, and it’s paid directly into the account. On balances over £2,499.99, no interest paid. Account-holders will receive a Lloyds Bank Visa debit card. The card has contactless functionality, and account holders can use it to shop online or in-store.
To apply for the Lloyds Bank Under 19s, the child must be between 11 to 17 years. Options include visiting a local brand and applying online. For 11 and 12 year children, a parent or guardian must be present during account opening.
If older, Lloyds Bank recommends opening a Classic or a Student Account.
Halifax Express Cash…
The Halifax Express cash is a bank account for kids available to teens aged 11 to 17 years. As part of Halifax’s Online Banking experience, financial education and security are available. Account-holders will receive a Visa debit card with international contactless capability. They can withdraw up to £500 or shop online and in-store.
The account will earn an interest of 0.50% AER or gross on balances between £1 and £2,499.99. For balances over £2,499.99, no interest paid. For teens aged 15 years and under, a parent or guardian must be present when opening an account.
To open an account, visit a local branch. Before applying for the bank account, parents or guardians must have the following:
- Proof of identity such as a passport or UK birth certificate
- Proof of parent’s or guardian’s identity and address
For teens aged 16 years and over, they don’t need parents or guardians to accompany them. But they must present proof of identity and address.
Nationwide’s Bank Account for Kids is called the ‘FlexOne current account’ the FlexOne Bank Account for Kids is eligible for young people aged 11 to 17 years. With the FlexOne current account, young people can save their money, check balances at home or on the go.
Nationwide does not charge anything for using the FlexOne current account. Better than a piggy bank, the account will earn a monthly interest of 0.10% AER or 0.09% gross p.a on balances up to £1000. Young people can make mobile payments using Samsung Pay, Apple Pay and Google Pay.
Users can manage their account online, mobile app, over the phone and via text alerts. Parents or guardians can open an account online or over the phone on behalf of their children. Online applications are available to 13 to 17 years old while 11 to 12-year-olds can have their accounts opened over the phone.
At the time of writing, no one can open a FlexOne account in branch.
NatWest Adapt Bank Account…
The NatWest Adapt Bank Account for kids is available to young people aged 11 to 18 who are UK residents. It offers 1% interest on your balance. The NatWest Adapt Bank Account comes with lots of benefits.
First, the account holder will receive a Visa debit card. With the Visa debit card, you can shop online, in-store, and withdraw cash from a cash machine. Account holders can download the mobile banking app to manage their accounts.
Like other current accounts for children, account opening depends on the child’s age. Children aged 11 to 15 years need a parent or guardian to open an account. If you’re 16 to 17 years, you can open the account yourself.
To open an account, parents or guardians need to provide details such as contact information, current address, and identity proof.
Tailored for children aged 11 to 15 years, the Barclays BarclayPlus bank account for kids is a secure and straightforward bank account with no monthly fees. The Barclays BarclayPlus bank account comes with several benefits. First, you can design your own debit card using your favourite photo.
Second, you can check your account balance by using Barclays BarclayPlus mobile app. Third, the Visa debit card with contactless technology allows you to shop online and in-store. Lastly, there are no monthly fees, and you’ll earn interest on your account.
As a parent, you can open the Barclays BarclayPlus on behalf of your child using Barclays mobile app through video banking. Besides video banking, parents or guardians can visit the local branch to open a Barclays BarclayPlus.
You must bring your passport, national identity card or birth certificates plus your child’s relevant documents.
The Starling Kite bank account for kids can turn your kid’s spending into skills and help them manage their pocket money. Easy to set up, you can make regular transfers instantly from a single app. The app will alert you the second they spend. This enables you to know where their money goes.
The app allows you to set spending limits for specific transactions and have full access to your child’s spending history. It also enables you to lock the card instantly in case it’s stolen or lost.
Starling is planning on developing a child-friendly version of the app. This will help your child learn how to manage his or her money and work towards saving goals. As the primary account holder, your money is always covered by FSCS protection up to £85,000.
Metro Bank Cash Account…
As the most basic bank account for kids is offered by Metro Bank, the cash account gives your child the flexibility to make payments using a debit card. As an excellent option for thousands of customers, the Metro debit card supports contactless payments. All your child needs to do is tap the card on the reader, and you’re done.
Available to children aged 11 or older and residents in the UK, there are no monthly fees or minimum balance. You can open the cash account in a few minutes, and all you need to provide is proof of identity and address.
If you’re a non-UK resident, you’ll need to provide a valid visa or remittance permit. The maximum withdrawal amount is £300 a day from cash machines. If taking the money out in-store, the maximum amount is still £300 for children aged 11 to 15 but £1,000 for teens over 16 years.
Danske Bank Discovery Account…
Another great Bank Account for Kids is by The Danske Bank. Their Discovery account is open to young people aged 11 to 17 years old. As an everyday current account, it comes with the latest digital features for security and money management.
You have the eBanking and Mobile bank app that offers easy access to your account. Your child can check the account balance, track his spending and more. With Paym, he can send and receive money on your smartphone.
The bank offers a contactless debit Mastercard that an account holder can use to buy stuff online or in-store. He can use the card to withdraw money from cash machines. To apply for the Danske Bank – Discovery, the account holder must be living in the UK or Northern Ireland.
The presence of parents and guardians is always required if the child is 11 to 15 years old. They must carry proof of identity (child), proof of identity(parent) and address.
Bank of Scotland Under 19s…
The Bank of Scotland has a great bank account for kids which is called ‘Under 19s’ this account is for children aged 11 to 18 years. Holders have the choice of a Visa debit card which they can use to shop online or in-store. They can also use the debit card at Cashpoint machines or over the phone.
The account pays a variable rate of interest of 0.50% AER or gross on balances between £1 and £2,4999.99. The interest is usually paid quarterly. Holders will receive free mobile alerts. This helps them keep an eye on their account.
Once they reach 16 years or older, they’ll have access to other services. One of those services is access to telephone banking. This allows an account holder to do everything – from transferring money to checking balances among others.
To apply, those aged 11 to 15 years must be in the company of a parent or guardian. The parent must provide proof of identity of the child plus proof of identity and address of the parent. If over 16 years, holders don’t need a parent or guardian to accompany them.
RBS Revolve Account…
The RBS Revolve bank account is yet another great bank account for kids. It’s open to young people aged 11 to 18 years. It pays 0.55% interest on your balance. So, if the account balance is £100, the holder’s interest will be £0.55. The interest is usually paid directly into your account and on a quarterly basis.
The account comes with a choice of a Visa debit card. Holder’s can make purchases online or in-store using the card. Alternatively, holders can withdraw cash from cash machines. RBS offers an easy to use and secure mobile app.
Compatible with iOS and Android devices, an account holder can check his recent transactions and transfer money. If older than 16 years, a young person can pay family and friends by using his mobile number with Pay Your Contacts.
If under 16 years, your parents or guardian will apply for an account, but if over 16, you can apply online.
Opening a bank account for your child is the best decision a parent or guardian can make today. With a bank account, parents and guardians can tackle the subject of finance and money management early. Children can learn how to save, spend, budget and manage their money.
Also, they get to learn how to use mobile apps to keep track of their accounts and spending. With this knowledge, children can make wise choices regarding goal setting, saving, and spending.
If you want your children to reap the benefits above and more, open a Bank Account For Kids today.