The 9 best children’s savings accounts 2020 from Halifax to Barclays

THINKING of opening a children’s savings account for your little one? We round-up the best rates currently available. Savings accounts for children work in a similar way to adult ones though interest rates tend to be higher. But with so many different options available, from regular savings accounts and easy-access options to Junior Isas, you […]

THINKING of opening a children’s savings account for your little one? We round-up the best rates currently available.

Savings accounts for children work in a similar way to adult ones though interest rates tend to be higher.

Getty - Contributor

But with so many different options available, from regular savings accounts and easy-access options to Junior Isas, you may be wondering where to begin.

Here are the best-paying accounts currently available on the market, according to comparison site Moneyfacts.

What are the best children’s regular savings accounts right now?

Regular savings accounts require parents to put a minimum amount of money away monthly.

Typically it ranges from £5 to £100 a month for a year.

They tend to offer the highest rates, but because the amount you save builds up slowly the total interest you earn is limited.

Bear in mind that if you miss a payment or need to withdraw cash during the period you might lose the rate.

So make sure you’ll be able to fork out the cash during the time period.

What are the best easy access savings accounts right now?

Easy access savings accounts are a good choice if you want your child to be involved and learn about saving.

They’re a good place to start as they allow you and your child to add and withdraw cash at any time, but you’ll get lower rates because the money is always readily available.

Encourage your child to put away a portion of their birthday and pocket money.

• Santander 123  – Apply here
  Rate: 3% variable
  Interest earned on £1,000 balance over 12 months: £30

• HSBC Children’s Regular Saver – Apply here
  Rate: 2.5% variable on first £3,000, 0.25% after this amount
  Interest earned on £1,000 balance over 12 months: £25

• Bath Building Society Junior Saver – Apply here
  Rate: 1.8% variable
  Interest earned on £1,000 balance over 12 months: £18

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What are the best easy-access Junior Cash Isas in 2019?

Junior Isas (Jisas) are tax-free savings accounts for kids under-18.

They allow parents to save money free from tax either in cash or by making investments.

Once the child turns 18, the Jisa automatically converts into an adult Isa and the child has full control over the money.

• NS&I – Apply here
  Rate: 3.25% variable
  Interest earned on £1,000 balance over 12 months: £32.50

• Coventry Building Society – Apply here
  Rate: 2.95% variable
  Interest earned on £1,000 balance over 12 months: £29.50

• Tesco Bank – Apply here
  Rate: 2.75% variable
  Interest earned on £1,000 balance over 12 months: £27.50

Savings accounts are not the only way you can save for your child’s future.

By saving into a pension from the time your child is born you could make your child a millionaire by the time they are 64 with just £60 a week.

The Sun took a look at the best-paying accounts on the market which will give you the most bang for your buck.

And here are the best personal loans 2020 from Tesco Bank to Santander.