[Duncan]

Current accounts

An account opened with a bank that has instant access and either comes with a debit card/cash card or can convert to have one in the future.

Different accounts have different minimum ages most start at 11 to 16 and end at 19. Some can be opened younger or held in trust.

These accounts don’t have an overdraft and cant incur charges. Some account will earn credit interested but not all.

Current accounts are a great way to instill money management into young people and can encourage saving and responsible spending and cash handling skills.

Examples include

Santander’s 123 mini (can be in trust)

Bank of Scotland under 19 account.

Gohenry children’s account

Nimbl

Savings account

Interest bearing accounts. These can either be instant access, fixed term or notice based accounts. Many of these accounts can be held in trust by any responsible adult.

There is a massive variety on the market and rates vary consider. Be careful to choose the right account for your needs and don’t just focus on the interest payments.

Junior ISA

The JISA was introduced in April 2015 as a tax free savings account to replace the child trust fund system. Money placed in a JISA is locked up until the child turns 18(unless there are exceptional circumstances)

The 2018/19 JISA limit is £4260.

You can hold 1 JISA per child and if the child is under 16 the account must be opened by a registered contact that is a person with parental responsibility.

There is a wide range of accounts from cash JISA’s to investment based accounts. It is possible to move the funds from 1 JISA to another by completing transfer forms with the new provider. In addition if the child already has a child trust fund this must be transferred into the JISA.

Remember with savings rates are always changing and many introductory rates end so review accounts regularly and change accounts or banks to ensure you are getting the best returns

[Al Ferguson]

Which banks have JISA’s? Sound good.

We’ve used Metro bank and they’ve been pretty good. Our 13 year old has a cash card and it’s working well for him.

[Duncan]

Coventry 3.5%
Nationwide 3.25%
Tesco 3.15%
This is a selection of cash JISA’s currently available
But rates are all under review after the base rate increase.

[Ebun Faturoti]

My older two have Go Henry accounts.

Seems to work for them. They don’t seem to spend so quickly now and actually have started to think about what they really want instead of blowing it al on sweets!!

[Rhys32]

Clubbed for the Halifax regular saver as it had high interest at time of opening. Works well with standing order monthly trickling bits in. It runs concurrently with another saving account (can’t remeber the name) which can take cash and cheque deposits and the regular saver deposits into it at the end of the year.

– cheers for info Duncan will have to checkout some of the current options on the market

No cash card, but can be added if needed.

Probably due to review it soon see if there’s better options out there. The annoying thing about this set up is you don’t get the higher rate after each 12 month cycle as it dumps it into the other account. So you can’t build interest on full amount.

[Anonymous]

There are also a few apps now that your children from ages 8 and up can get their own savings debit card and app for their iPad, encouraging them to save rather than spend.

[Author]

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