In a world of debit cards and contactless payments, cash is being used far less and so it is proving more and more difficult to involve your children and get them interested in money. In this article, we look at the best bank accounts for children and teens, as well as the best pocket money accounts, also known as pre-paid cards.
Who can get a children’s bank account and how does it work?
Children's bank accounts are for children aged between 11-18 years old and, much like standard bank accounts, they allow bank transfers, direct debits and standing orders, however they do not charge any fees or provide credit facilities such as overdrafts or loans. As there is no credit facility on offer, a credit check is not required and your child will never be able to get into debt.
Children have to open their bank account themselves (with an adult present for identification purposes) although with some accounts, over 16s can open an account independently. A children's bank account comes with an optional debit or cash card. The debit card allows the withdrawal of cash and spending online whereas the cash card is for cash withdrawals only.
Children's bank accounts are regulated accounts so the funds are protected by the FSCS up to £85,000. If the card is lost or stolen you should contact the bank immediately to minimise the risk of fraudulent activity.
You may be wondering how you can manage your child's money if you give them free rein of their own bank account? Unfortunately, there is no way of keeping tabs on their spending like with a pre-paid card (as mentioned later in this article) however, you can manage their spending by only depositing small amounts into the account at any one time.
What happens when the child reaches 18?
Once the child reaches the age of 18 most accounts automatically transfer to a standard bank account, although some may close, so it may be worth checking with the bank provider.
How do you open a children’s bank account?
To open a children's bank account you will need to provide two forms of ID that confirm that you both live at the same address. This will need to be either a passport or birth certificate and a recent household bill or bank statement.
Best children’s bank accounts
In the comparison table below we have summarised the best children's bank accounts on the market right now. There isn't much difference between children's bank accounts and so you may want your child to bank with the same provider as you do, however, it is worth noting that some banks offer a higher interest rate on balances than others.
A comparison table of the best children's bank accounts in the UK
| Eligibility | Interest earned | Card type | Charges | Extra | |
| Barclays Children's Account | 11-15 | 0.10% from £1
0.60% from £1,000 |
Cash/Debit | Free |
|
| Halifax Express Cash account | 11-17 | 0.5% between £1 - £2,499.99 | Debit | Free |
|
| HSBC | 11-17 | None on current account but can earn 2.50% up to £3,000 and 0.25% over £3,000 on savings | Debit | Free |
|
| Lloyds Under 19 account | 11-17 | 0.50% from £1 to £2,499.99. | Debit/Cashpoint card | Free |
|
| Nationwide Flexone account | 11-17 | 0.10% up to £1,000 | Cash/Debit | Free |
|
| NatWest 'Adapt' account | 11-17 | 1% | Debit | Free |
|
| Santander | 11-18* | 3% from £1,500-£2000 | Debit/cash (not available for accounts in trust) | Free |
|
| Starling Kite account | 6-16 | 0.05% | Debit | £2 a month |
|
| TSB under 19 | 11-18 | 2.5% up to £2,500 (0.1% over this) | Debit | Free |
|
*Children under 13's account must be opened in trust but trust status can be removed for children over 11
- For 11-15 year olds
- No monthly fees
- Contactless debit card/cash card available
- Open from £1
- Apple Pay
- Banking app
- For 11-17 year olds
- No monthly fees
- Contactless Visa debit card
- Withdraw up to £500
- Send/receive a payment with 'Pay a contact'
- For 11-17 year olds
- No monthly fees
- Contactless Visa debit card
- 2.75% fee if the card is used abroad
- For 11-17 year olds
- No monthly fees
- Contactless Visa debit or cashpoint card
- Earn interest on your money
- Mobile banking app
- 16-17 year olds benefit from the 'Save the change' and 'Money management features'
- For 11-17 year olds
- No monthly fees
- Earn interest on your money
- Cash or debit card
- Apple/Google/Samsung Pay
- Text alerts
- Mobile banking
- For 11-17 year olds
- No monthly fees
- Earn interest on your money
- Contactless mobile banking
- Paym to pay your friends
- For 11-18 year olds
- Under 13 children's account must be opened in trust
- No monthly fees
- Choice of debit or cash card
- Earn interest on your balance
- For 11-18 year olds
- No monthly fees
- Visa debit card
- Weekly balance alerts
- AA Driving discounts for those aged 17+
- Save the pennies
- For 6 - 16 year olds
- £2 monthly fee
- Mastercard debit card
- Instant spending notifications
- Spending insights
- Set spending limits
Pros and cons of a children's bank account
Pros
- Free to open and use
- Children can gain a better understanding of money
- Gives children a sense of freedom
- FSCS protection
Cons
- Unable to control what your child is spending (excluding Starling Kite)
Best teen bank accounts
A teen bank account may be a more suitable option for a 16-17-year-old as the accounts tend to offer more features than a children's account. Some of the teen accounts mentioned in the table below are app-based bank accounts and so give teens full independence over their money whilst not compromising safety. This means that some purchases will be restricted as they are reserved for over 18's.
A comparison table of the best teen bank accounts in the UK
| Eligibility | Is it a Bank? | Fee-free travelling | Charges | Overdraft | Extra | |
| Barclays Young Person's account | 16-17 |  |
 |
Free to open (Non-sterling transaction fees) | |
|
| Monzo | 16-17 | |
|
Free to open | |
|
| Revolut | 7-17 | |
|
Free to open although a parent needs to have a Revolut account | |
|
| Starling Bank | 16-17 | |
|
Free to open | |
|
Barclays Young Person's Account
- No monthly fees
- Contactless debit card that allows in-store and online shopping
- Contactless payments with your mobile
- Design your own card
- Withdraw up to £300 a day
- 2.75% transaction fee for spending abroad
- Instant spending notifications
- Age-restricted blocks such as gambling
- Contactless debit card
- Apple and Google Pay
- Full UK current account including direct debits and standing orders
- Spending budgets
- Bill splitting
- Fee-free spending abroad
- Withdraw up to £200 for free abroad every 30 days (3% fee afterwards)
- Revolut Junior app
- Get instant spending alerts
- Set custom rules for online and contactless payments
- Age-restricted blocks
- Goal saving, earning tasks and recurring allowances (some features are only available to premium account holders)
- Money is held in an e-money account
- No FSCS protection as not yet a fully regulated bank in the UK
- Mastercard debit card
- Earn interest on your current account balance, 0.05% up to £85,000
- Apple, Google, Samsung Pay
- Instant spending notifications
- Spending insights
- Savings goals
- Settle bills with friends
- Fully regulated bank account
Pros and cons of a teen bank account
Pros
- Allows teens to have more independence over their money
- More features than a children's bank account
- Teaches budgeting due to the additional money management features
Cons
- Less control over your child's spending
Alternatives to a children's bank accounts
An alternative to a children's bank account is a prepaid card, sometimes referred to as a 'pocket money' account. A prepaid card has to be opened by a parent/guardian and allows you to load cash onto the card. Similar to a bank account, your child can spend and withdraw money but you have more control over the money spent.
A prepaid card generally comes with an app that can be seen by both the parent and the child. The parent/guardian has the ability to restrict spending by setting spending limits or blocking the card.
Prepaid cards do however come with some drawbacks. Unlike children's bank accounts, most come with a monthly or annual fee and there may be charges for withdrawing money from an ATM. We go into more detail in our article 'The best pocket money apps'.
Are prepaid cards safe?
If the card was lost or stolen it can be shut down via the app to prevent anyone using it fraudulently. However, money held on a prepaid card is held as e-money and is therefore not protected under the Financial Services Compensation Scheme (FSCS).
A comparison table of the best prepaid cards in the UK
| Eligibility | Cost | Loading fee | ATM fees | Fees abroad | |
| GoHenry | 6-18 | £2.99/month (1 month free) | 50p (1 free load a month) | Free |
|
| Nimbl | 6-18 | £2.49/month £28/year (1 month free) | Free | Free |
|
| Osper | 8-18 | £2.50/month (1 month free) | 50p instant loads or free by debit card | Free |
|
| RoosterMoney | 6-18 | £24.99/year (1 month free) | 10 free a month, max 3 a day (50p thereafter) | Free |
|
- For 6-18 year olds
- Get a personalised card
- Set tasks and chores for your child to complete
- Real-time spending notifications
- Block/Unblock cards
- Open up to 4 GoHenry accounts
- For 6-18 year olds
- Top up instantly
- Instant spending notifications
- Spending limits can be set by parents
- Micro saving feature
- Add up to 4 children
- For 8-18 year olds
- Set allowances for your child to manage
- Regular savings feature
- Spending categorisation
- Link Osper to KidSmart and save money at major retailers
- Add up to 4 children
- For 6-18 year olds
- Keep track of pocket money, spending and saving
- Chore manager
- Set spending limits
- Additional features such as a start chart to teach children from aged 3+ about money
- Add up to 4 children
Pros and cons of a prepaid card
Pros
- Children as young as 6 can learn how to manage their money
- More control over your children's money
- More child friendly
- Easy way to pay pocket money
Cons
- A monthly or annual fee
- May charge to withdraw cash
- Fee for spending abroad
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