Money & Budgeting

Best Savings Accounts for Children 2026 — Junior ISAs, Child Accounts & More

Compare the best children's savings accounts, Junior ISAs, and child trust funds. Find the highest rates for your child's savings in 2026.

By PocketWise · · 5 min read

Starting a savings habit early gives children a financial head start. Here’s how to find the best account for your child’s money in 2026.

Best Children’s Savings Accounts at a Glance

Account Type Best Rate (2026) Access Tax Status
Junior Cash ISA Up to 4.5% Locked until 18 Tax-free
Junior Stocks & Shares ISA Variable Locked until 18 Tax-free
Children’s Regular Saver Up to 5.5% Monthly deposits Taxable*
Children’s Instant Access Up to 4% Flexible Taxable*

*May be tax-free depending on source and amount.

Types of Children’s Savings

Junior ISA (JISA)

Feature Cash JISA Stocks & Shares JISA
Annual limit £9,000 £9,000
Returns Fixed/variable interest Investment growth
Risk None Market risk
Access Age 18 Age 18
Tax Tax-free Tax-free
Best for Short-medium term Long-term (5+ years)

Children’s Savings Account

Type Features Best For
Instant access Withdraw anytime Accessible savings
Regular saver Monthly deposits, higher rates Building saving habits
Fixed term Higher rates, locked period Lump sums

Best Junior ISAs 2026

Cash Junior ISAs

Provider Rate Minimum Features
Coventry BS 4.50% AER £1 Online management
NS&I 4.00% AER £1 Government-backed
Nationwide 4.25% AER £1 Branch access
Moneybox 4.40% AER £1 App-based

Stocks & Shares Junior ISAs

Provider Fees Minimum Best For
Vanguard 0.15% £500 lump sum or £100/month Low-cost investing
Fidelity £0 ongoing (some funds) Any Beginners
AJ Bell 0.25% £500 Fund choice
Hargreaves Lansdown 0.45% £100 Service quality

For long-term savings (10+ years): Consider stocks & shares JISAs — historically they outperform cash over longer periods.

Best Children’s Savings Accounts 2026

Regular Savers (Highest Rates)

Provider Rate Monthly Limit Term
Halifax Kids’ Regular Saver 5.50% AER £100 12 months
HSBC MySavings 4.50% AER £50 Ongoing
Nationwide Smart Limited Access 4.25% AER £200 12 months

Instant Access

Provider Rate Minimum Features
Nationwide FlexOne 3.50% AER £1 Debit card at 11+
Lloyds Under 19s 3.25% AER £1 Branch access
Santander 123 Mini 3.00% AER £1 Cashback card

Notice Accounts

Provider Rate Notice Period Minimum
Various building societies 4-4.5% 30-90 days £1-100

The £100 Rule Explained

Important tax consideration for parents:

If a parent (or step-parent) gifts money to their child, and that money earns more than £100 in interest per year, ALL the interest is taxed as the parent’s income.

Scenario Tax Treatment
Interest under £100/year Child’s income (usually tax-free)
Interest £100+/year Parent’s income (uses their PSA)
Money from grandparents Always child’s income
Junior ISA Always tax-free

Example:

  • Parent gifts £5,000 earning 4% = £200 interest
  • This £200 is taxed as parent’s income
  • Solution: Use a Junior ISA instead

Who the £100 rule doesn’t apply to:

  • Grandparents
  • Aunts, uncles, family friends
  • Money the child earned
  • Child Trust Funds and Junior ISAs

Junior ISA vs Child Savings Account

Factor Junior ISA Savings Account
Tax Always tax-free May trigger £100 rule
Access before 18 No Yes
Control Child cannot access until 18 Parent manages, withdrawals possible
Annual limit £9,000 None
Best for Long-term savings Shorter term or teaching money skills

Child Trust Funds

CTFs were replaced by Junior ISAs in 2011, but existing CTFs continue:

Feature Details
New accounts No longer available
Transfer to JISA Yes — often worthwhile for better rates
Maturity Age 18
2026 maturity Those born between Sept 2007 - Jan 2011

Consider transferring: Many CTFs have poor rates. Transferring to a JISA could significantly improve returns.

Best Accounts by Age

Under 7s

Account Why
Junior ISA Best long-term option
High-interest savings Parents manage, flexible access

Ages 7-10

Account Why
Junior ISA Continue tax-free growth
Regular saver Teach monthly saving habit
Kids’ app accounts (GoHenry, etc.) Introduce money management

Ages 11-15

Account Why
Junior ISA 3-7 years until accessible
Account with debit card Independence with limits
Regular saver Own money from pocket money/gifts

Ages 16-17

Account Why
Adult ISA Can open cash ISA from 16
Junior ISA Continues until 18, then converts
Student account prep Check eligibility from 17

Setting Up a Junior ISA

Step by Step

  1. Compare providers — check rates and reviews
  2. Check child eligibility — UK resident, under 18, no existing JISA/CTF
  3. Apply online — parent/guardian applies as registered contact
  4. Verify identity — child’s birth certificate, parent’s ID
  5. Set contributions — lump sum, regular, or both
  6. Monitor and review — annually check if rate is competitive

Who Can Contribute

Anyone can add money to a Junior ISA:

  • Parents
  • Grandparents
  • Other relatives
  • Friends
  • The child (from pocket money, earnings)

Total across all contributors: Maximum £9,000 per tax year

Teaching Children About Saving

Ideas by Age

Age Activity
3-5 Clear piggy bank, count coins together
6-8 Set a saving goal (toy), track progress
9-11 Open account together, show statements
12-14 Discuss interest, let them manage small amounts
15-17 Involve in investment decisions, explain ISAs

Apps for Financial Education

  • GoHenry — prepaid card with parental controls (fee applies)
  • RoosterMoney — chores and pocket money tracking
  • Starling Kite — Starling’s kids card (Starling account needed)

Our Top Picks

Need Recommendation
Long-term savings Vanguard Junior Stocks & Shares ISA
Risk-free savings Coventry Building Society Cash JISA
High interest (accessed before 18) Halifax Kids’ Regular Saver
Learning money skills GoHenry or Starling Kite
Flexibility + parental control Nationwide FlexOne

Summary

  • For savings until 18: Junior ISA offers tax-free growth
  • For accessible savings: Children’s savings accounts, but beware the £100 rule
  • For teaching money skills: Kids’ accounts with cards and apps
  • For long-term growth: Consider stocks & shares JISAs for 7+ year horizons

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Sources

  1. MoneyHelper — Everyday money