The different types of kids’ savings accounts

There are a few different types of children’s savings accounts out there, each with their own pros (and a few things to be aware of). Today we’re breaking down the different types of savings accounts available for kids, to help you pick the best one for you and your child. We’ll be looking at:

Instant access savings accounts
Fixed rate savings accounts
Regular savings accounts

Before we get into it, a quick heads up – you should always do your own research before opening an account to make sure you’re choosing the right one for your family.

What’s a children’s savings account?

As the name suggests, it’s a savings account made just for kids. They often come with tools to help them build healthy money habits early on.

While most accounts are available from the age of 7, some banks offer accounts for even younger children. All of them require an adult to set up and start the account, and many have restrictions on how and when you can access the money, and must be managed by a parent or guardian – at least at first.

There are also Junior ISAs (JISAs for short) – they’re a little different to children’s savings accounts in that the money is typically locked away until the child turns 18.

There are plenty of options with different interest rates, access levels, and features to suit your child’s needs. If you want to learn more about opening an account, you can read our guide.

Instant access savings accounts for children

The first type of children’s savings account we'll cover is instant access savings. They’re called ‘instant access’ because you and your child can usually access the money whenever you need to. There are typically:

No restrictions on withdrawals: you and your child can take money out whenever you want
Lower or variable interest rates: compared to other account types
No fixed term: giving you complete flexibility

These accounts work well for:

Saving up pocket money for a specific treat, like that Jellycat they’ve got their eye on
Putting aside birthday money for the summer holidays

These features can vary quite a bit from bank to bank, so take a look at the details before you commit.

Fixed rate savings accounts for children

They’re called ‘fixed rate savings accounts’ because the interest rate is typically fixed, and the money is locked away for a set timeframe.

Here are the main features:

Tied-up savings: the money is usually tucked away for a set period of time (this tends to be between 1 and 5 years)
Withdrawal penalties: there can be a cost if you withdraw money early
Higher interest rates: the trade-off is that rates tend to be higher than other accounts

These accounts are ideal for:

Medium-term savings, like saving up for a new laptop
Long-term savings for your child’s future

As with an instant access savings account, features can vary by provider, so always check the details.

Regular savings accounts for children

They’re called ‘regular’ savings accounts because you’ll need to contribute to the account on a regular basis. Here are the typical features they come with:

Monthly contributions: you’ll need to contribute savings regularly
Fixed or variable interest rates
Limited access: you might not be able to make withdrawals whenever you want
Missed payment penalties: if you miss your regular contribution

They can be used for things like:

Saving for a mid-term goal, like driving lessons or a school trip
Long-term savings for your child’s future

Saving for kids with Monzo for Under 16s

Our Monzo for Under 16s savings account is an instant access savings account. It’s packed with features to help children build healthy money habits early on, including:

Interest on savings
Optional spending limits to help children learn independence
Instant notifications whenever your child spends
Saving goals so you can celebrate milestones together
An optional saving sidekick that’ll react to your child’s saving progress
A neon card to make them feel that bit more grown up
Easy parent contributions so you can help them save more in just a few taps from the Monzo app

To set one up for your child, you’ll first need a free Monzo for Under 16s account. Available for children ages 6-15 (UK only). You can find out more about the features of the Monzo for Under 16s Account on our help pages.

Picking a kids' savings account

There’s no single right choice when it comes to picking a savings account for your child. Some might benefit from the flexibility of instant access, while others might find the structure of regular savings more helpful.

Our Monzo for Under 16s account gives your child their own account with spending limits, instant notifications, interest on their savings account, and their own neon card. It's designed to help them build financial confidence, while keeping you in control.

Ready to get started? Apply for an Under 16s account today.

Interest paid monthly. £10,000 maximum in savings per child. Ages 6–15. Parent/Guardian account needed. UK residents only. Ts&Cs apply.

Questions? Answers.

What kids' savings account should I get for my child?

The best kids' savings account for your child depends on their age, saving goals, and how much access they need to their money.

An instant access account works well for kids who are saving for short-term goals where they’ll need to access the money easily, like a cinema ticket or a Friday night treat. For longer-term goals where they won't need the money for a while, or if you just want to save for their future, a fixed rate account might offer better interest rates.

How many kids' savings accounts can a child have?

With Monzo, children can have up to 20 savings accounts and Pots in total. You can have a maximum of £10,000 in savings per child. You can of course open a savings account elsewhere too. However, it's worth thinking about whether having multiple accounts actually helps, or just makes things more complicated. Too many accounts can make it harder for your child to keep track of their money, and harder for you to oversee things. One or two – like an instant access one for now and a fixed rate for later – is usually plenty.

What kids’ savings accounts do Monzo offer?

We offer savings accounts for children aged 6-15 through our Monzo for Under 16s account. It’s an account for kids, linked to yours, with their own neon card they can use in-person and online. To open an Under 16s savings account, you’ll need to have an Under 16s account first – available to children aged 6-15 (UK only). You can’t open an Under 16s savings account on its own.

The account includes instant access savings that interest, which is calculated daily and paid monthly. The maximum you can save is £10,000 per child.