One of the most common reasons for opening a child savings account is to save for your children’s future. Starting this process early by opening an infant savings account means that the money you and your child save until they turn 18 can put them on a solid financial footing for their adult life. They might even be able to afford a car, university tuition fees, or a house deposit.
Beyond long-term goals, you might also want to open a children’s savings account for short- or medium-term objectives. Whether it’s saving for a computer, tablet, or musical instrument, opening an account encourages your child to save for these big purchases themselves.
What is needed to open a child savings account?
You will need various documents to open a children’s bank account:
Their birth certificate
If you’re opening an account with a bank or building society you don’t bank with as an adult, you’ll need to provide your proof of ID, such as your passport or driving licence, as well as a bank statement or utility bill
Children under the age of seven must have a parent, guardian, or grandparent set up an account
Some easy access accounts require the parent to already have a current account with the bank
Before the pandemic, opening a child savings account meant visiting a branch. Now, you can open an account online, depending on the provider, by providing a photo of your child, photo ID, and proof of address.
Can I open one savings account for two or more children?
No. Like adult savings accounts, a child savings account is unique to them. So if you want to save for more than one child, you’ll have to open separate savings accounts for each of them.
At what age can a child open a children’s savings account?
Your child usually has to be over seven years of age to open their own child savings account. If they’re under seven, a parent, guardian or grandparent should open the account on their behalf, and will normally administer the account until the child reaches the age of 16. You can also still choose to do this if your child is over seven. Specific requirements will depend on the type of account you open and the service provider, so it’s best to check the terms and conditions.
It’s important not to confuse this with a bank account for kids, which generally requires the child to be slightly older. A child bank account usually has a minimum age of 11, while a teen bank account can typically be opened from 16 years of age.
When can a child take over control of their savings account?
When a child can take control of their savings account really depends on the type of child savings account you open and the provider you open it with.
There are two instances, however, where the age is set in stone. If your child has a child trust fund or a Junior ISA, they take control of their account when they turn 16, although they can’t access their money until they turn 18.
Can a grandparent open a savings account for a grandchild?
Yes, grandparents can open savings accounts for their grandchildren. To open a savings account for a minor, you’ll need to provide the correct documentation to open the account, including your grandchild’s birth certificate. You’ll need to provide your ID and proof of address if you’re opening an account with a bank or building society where you’re not a customer.
If you want to contribute to your grandchild’s savings, you can gift up to £3,000 per child per year without paying inheritance tax (although it’s worth noting that no tax is due on gifts made more than seven years before your death). If you don’t gift the full £3,000, the difference can be carried over for one tax year.
