How to choose the best savings account for children
Published February 2023
How to choose a savings account for children
2 minute read
How parents typically save for their children
According to research from Janus Henderson Investment Trusts[1], more than seven in 10 parents (72%) who have children under 18 regularly save money towards their child’s future. But many parents who save for their children tend to put cash in their own savings accounts rather than one specifically for a child.
This means children often miss out on the higher interest paid on junior savings products along with the sense of ownership with the account being theirs. With the cost of living crisis and affordability concerns now also starting to affect the amount of money parents can save for their children, it’s important to understand what steps you can take to make sure you choose the right savings account for your child and protect their financial future.
Making the right choice
Selecting a children’s savings account depends on how much the child wants to save and whether they’d like easy access to the money, or if they’d prefer to keep building their savings pot over time.
Likewise, factoring in other features of the account will also play a role in this decision, like whether there is an age limit and if they have to commit to monthly payments or would prefer to pay in money when they can.
Finally, setting clear goals and knowing the reason why, and for what they are saving is essential as this will help pick the right account and help your child lay the foundations to build their financial future. These could be:
- to help your child learn more about money and finance
- to help your child develop the habit of saving money gifted to them or earned from an allowance, chores or part-time job
- to save money for a specific financial goal or for a car or university once they are older.
How Coventry Building Society can help build your child’s future
At Coventry Building Society, a children’s account can be opened for as little as £1, helping your child learn positive saving and spending habits.
Coventry Building Society’s Young Saver is specifically designed for children aged from 7 to 17. It helps them learn how to save and manage their money through engaging financial education workbooks and rewards as they save. Up to £200 can be paid into the Young Saver account each month, while the easy access means the child who owns the account can take money out whenever they need to.
If you want to save for your child’s future, Coventry Building Society has a Junior Cash ISA, funds can help your child save for their future as the savings are stashed away until they are 18. Tax-free interest is paid annually on the account which, again, can be opened with as little as £1. A maximum of £9,000 can be paid into the account each year.
How parents or guardians typically save for their children
Lots of parents set up accounts for their children to save for their future. But why is it important to put cash in a specific account for children, rather than saving it into your own account? Opening a specific junior savings account means your child could take advantage of the usually higher interest these products have, along with the sense of ownership that comes from the account being theirs.
Our economic environment is constantly changing, but it's good to understand what steps you could take to make sure you choose the right savings account for your child.
Making the right choice
Choosing a children's savings account might depend on how much your kids want to save and how much access to the account they'd like over time. Factoring in other features will also play a role in your decision, like whether there's an age limit on the account, if they have to commit to monthly payments or if they'd like to just pay in money when they can.
Have a chat with your children and figure out what they want to save for and why. This might help you choose the right account to start building their pot. Some goals could be:
- To help learn more about money and finance
- To help develop the habit of saving money they get as a gift, that they've earned from an allowance, chores or part-time job
- To save money for a specific financial goal - like a car or university.
How Coventry Building Society can help build your child's future
At Coventry Building Society, a children’s account can be opened with as little as £1.
Our Young Saver is specifically designed for children aged from 7 to 17. It helps them learn how to save and manage their money through an engaging financial education workbook and rewards as they save. Up to £200 can be paid into the Young Saver account each month, while the easy access means the child who owns the account can take money out whenever they need to. This account can only be opened in branch. To find the nearest branch to you, use our quick and easy branch finder.
We also have a Junior Cash ISA which, again, can be opened with as little as £1. If you’re a parent or guardian, you can set up this account for your child until they turn 17. If your child is 16 or 17, they can open it on their own and when your child turns 16, they can choose to take over managing this account themselves. However, they can only access the funds once they turn 18. Tax-free interest is paid annually on the account and a maximum of £9,000 can be paid into the account each year*.
*This figure is set by the government and therefore may be subject to change. Correct for the 2025/2026 tax year.
Related articles:
Your first steps to saving smart
How to get into a good savings habit by following a few easy steps.
Published September 2023
Updated June 2025
