How interest works for Under 16s

Under 16s savings accounts allow children to save and earn interest. Interest will accrue daily on any of their savings accounts. We’ll pay the interest into their savings accounts on the 1st of every month, as long as it’s 1p or more.

If you or your child closes their savings account mid-month, then we’ll pay any accrued interest up to that day.

The interest rate is variable, which means that we can change it. If it does change, we'll let the primary parent or guardian know via email.

Opting out Currently you can’t access features like our saving sidekick and also opt out of interest. If you’d rather not have your child earn interest, they can use Pots instead.

Tax The primary parent or guardian legally owns the money in the Under 16s account. Any interest earned on your Under 16s savings accounts will normally count towards your Personal Savings Allowance and is taxable.

If the total interest you earn across all your bank accounts (not just Monzo) goes over your allowance, you may need to pay tax.

We can’t give tax advice, but you can learn more at GOV.UK. or get professional tax advice.