How to open a kids’ savings account

Saving for your child’s future can be a really positive step if it’s something you can afford to do. Small, regular amounts have the potential to grow into something meaningful over time – like a pot of money for their first car, to help fund university, or a trip around the world. But then comes the how – figuring out the first step of actually opening an account, which can be easy to put off, especially if you’re busy.

We’re here to walk you through what you need to do, the documents to have ready, and the things you can officially stop worrying about. Consider this your go-to guide to getting that savings account sorted, so you can cross it off your to-do list.

Step 1: Choose the right account for their future

First things first, let's figure out what kind of account you need. There are two main types, and they're each built for different savings goals.

1. Accounts in your child’s name (the money belongs to the child)

These include children’s easy-access and children’s regular savings accounts (where parents may need to pay tax if interest from their own savings exceeds £100 a year) and Junior ISAs (JISAs), which are tax-free.

Children’s easy-access savings account: The digital piggy bank

Think of this as a flexible, modern-day piggy bank. It's the perfect home for birthday money from granny, pocket money, or those first few pounds they earn from washing the car suspiciously fast. It's simple, it's flexible, and it's a great way to start teaching them the basics of saving in a hands-on way.

Children's regular savings account: The steady grower

These accounts are designed to help kids (and parents) get into a good saving rhythm. You pay in a set amount each month over a fixed period, and in return, you’ll often earn a higher interest rate than with a standard savings account. They usually come with strict withdrawal limits, so taking money out early can sometimes mean losing that extra interest.

Junior ISAs (JISAs): The long-term nest egg

A Junior ISA, or JISA, is a savings account designed for the long haul. The money you put in is locked away, tax-free, until your child turns 18 – which makes it ideal for building a significant nest egg for those big life moments to come. Heads up: you can usually only open one of these accounts for a child if you’re their parent or legal guardian. Learn more about Junior ISAs.

2. Accounts linked to a parent’s account (the money belongs to the parent)

These are accounts or apps that the parent or guardian opens and manages – like the Monzo Under 16s account or other prepaid card services. Monzo Under 16s is for spending as well as saving and earning interest.

Help kids learn to save and spend responsibly from an early age: These accounts and prepaid services are flexible in that children can manage their own money – spending, saving, and moving funds between goals or Pots – within the limits set by their parent or guardian. With the Monzo Under 16s account, parents also have extra tools to help keep a close eye on their child’s spending – things like notifications, spending limits, and the ability to freeze the child’s card if needed.
Easy to open: you can usually apply straight from your banking app without visiting a branch. For a Monzo Under 16s account, you can apply in minutes in the app.
Tax note: the money is technically held by the parent, so it’s the parent (or guardian) who would need to pay any tax.

Step 2: Your document checklist

This is the bit that often causes the most stress, but it's actually very straightforward. Here’s everything you’ll need to have handy to open a children’s account (in your child’s name) or an account linked to your bank account, like the Monzo Under 16s account:

Children’s accounts (in your child’s name)

For you (the grown-up):

Proof of ID: A valid passport or UK driving licence will do the trick.
Proof of address: A recent utility bill, council tax statement, or bank statement from the last 3 months.

For the child:

Proof of ID: Their birth certificate is the most common document needed. A passport works too.

Banks need these to verify who you both are and to keep their money safe from fraud.

Accounts linked to your name (like Monzo Under 16s)

No documents needed:

The parent or guardian opens and manages the account through their own app.
For Monzo Under 16s, the parent or guardian will need to have a Monzo account.

Once you have your own Monzo account, you can apply for an Under 16s account in minutes.

Things you can stop worrying about (the myth-busting bit)

Let's clear up a few things that people often worry about unnecessarily:

You don't need a large deposit. Forget the idea that you need a big lump sum to get started – most kids' savings accounts can be opened with as little as £1.
You don't need proof of address for the child. The bank will use your proof of address instead, so there’s no need to worry about this.
But you may still need to think about tax. It’s a common myth that children don’t pay tax – in some cases, they can. However, if a child has a non-ISA savings account and earns more than £100 in interest in a year from money given by a parent, that interest is treated as the parent’s income for tax purposes. (At 5.5% AER, that would mean a deposit of around £1,818.) This rule doesn’t apply to Junior ISAs, where savings up to the £9,000 annual limit are completely tax-free.

Looking for money inspiration? Here are some easy ways you can save money for your kids.

Step 3: Ready, set, save!

You've chosen the type of account you want and you've got your documents. Here's how to cross the finish line:

Compare the best accounts.

Take a moment to look at the interest rates (the AER), check if there are any rules about taking money out, and see how easy the account is to manage.

Fill out the application.

This is usually a quick online form where you'll enter you and your child’s details. It should only take a few minutes.

Upload your documents.

You’ll probably just need to take a clear photo of your ID and your child's birth certificate with your phone, and then upload them onto your chosen platform.

Ready to get started? Get an Under 16s savings account with Monzo.

Ages 6-15. UK residents only. Parent/Guardian account needed. Ts&Cs apply. Tax treatment depends on individual circumstances and may change in the future.

And just like that, you're on your way

See? Not so hard. You've chosen an account, gathered your documents, and completed the application. Taking this one simple step is a brilliant start for your child's financial future.

And as they grow, you can help them manage their money and build good habits for life.

Want to get a better handle on your own finances too? See how you can manage your family's finances with Monzo.

UK residents only. Ts&Cs apply.

Questions? Answers.

At what age can a child have a savings account?

Most banks allow you to open a savings account for a child from the day they're born. The type of account and who controls it will change as they get older.

Can grandparents open a savings account for their grandchild?

This depends on the bank and the type of account. For a Junior ISA, only a parent or legal guardian can open the account, but anyone can pay into it. For other types of savings accounts, some banks do allow grandparents or other family members to open them. It's always best to check with the bank directly.

Is the money in a kids' savings account protected?

Yes, eligible deposits in a UK-regulated bank are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person. Learn more about FSCS protection here. For a child savings account, the FSCS protection and £120,000 limit will only apply to the adult who owns the account.