{"id":10918,"date":"2019-11-13T14:25:10","date_gmt":"2019-11-13T14:25:10","guid":{"rendered":"http:\/\/www.kidstart.co.uk\/blog\/?p=10918"},"modified":"2023-08-03T16:11:25","modified_gmt":"2023-08-03T15:11:25","slug":"junior-isas-child-trust-funds-savings-accounts-childrens-savings-explained","status":"publish","type":"post","link":"https:\/\/www.kidstart.co.uk\/blog\/junior-isas-child-trust-funds-savings-accounts-childrens-savings-explained\/","title":{"rendered":"Junior ISAs, Child Trust Funds, savings accounts: children’s savings explained"},"content":{"rendered":"\n
\n

We all want to save money for our kids\u2019 future \u2013 but where should you put your cash? Here we examine the different options so you can decide which one is right for you.<\/span><\/p>\n<\/header>\n\n\n\n

Any parent knows all too well that raising children doesn\u2019t come cheap. But even putting aside just a few pounds a month into a savings account for your child can build into a sizeable nest egg over time.<\/p>\n\n\n\n

Whatever the savings are eventually used for \u2013 driving lessons, a deposit on a house, college or university fees, a wedding \u2013 you\u2019ll be glad you put a savings plan in place!<\/p>\n\n\n\n

Below are the most popular savings options for children. We examine the pros and cons of each.<\/p>\n\n\n\n

Children\u2019s \u2018easy access\u2019 accounts<\/span><\/h3>\n\n\n\n

What are they? <\/strong>These are simple accounts similar to adult current accounts. Most major banks offer them. They allow you to withdraw or deposit cash whenever you like, and most can be opened with as little as \u00a31.<\/p>\n\n\n\n

Who are they available to? <\/strong>Normally any child aged up to 18.<\/p>\n\n\n\n

Any limits on how much you can save? <\/strong>Some accounts do, but many have no limits at all.<\/p>\n\n\n\n

Pros: <\/strong>You can get easy access to the money whenever you need it.<\/p>\n\n\n\n

Cons: <\/strong>Interest rates on these accounts vary hugely, and can go up and down. Some banks\u2019 rates are quite poor, but they\u2019ll try to tempt you to sign up with free gifts.<\/p>\n\n\n\n

Children\u2019s \u2018regular savings\u2019 accounts <\/span><\/h3>\n\n\n\n

What are they? <\/strong>These are accounts designed to encourage regular saving. You have to pay some money into the account each month, and you may not be able to access your money easily. In return for this inconvenience, you normally get a higher rate of interest than \u2018easy access\u2019 accounts.<\/p>\n\n\n\n

Who are they available to? <\/strong>Normally any child aged up to 18, though some accounts may have a maximum age limit of 15 or 16.<\/p>\n\n\n\n

Any limits on how much you can save? <\/strong>You are normally restricted to investing a maximum monthly amount (typically around \u00a3100). However you can always open another regular savings account with another bank, if you wish.<\/p>\n\n\n\n

Pros:<\/strong> These accounts tend to pay a higher rate of interest than \u2018easy access\u2019 accounts. These accounts can also be a good way to get your kids into the habit of saving.<\/p>\n\n\n\n

Cons:<\/strong> These accounts aren\u2019t very flexible if you need to suddenly access the money, or want to invest a lump sum. If you miss a monthly payment the interest rate you receive is usually cut dramatically.<\/p>\n\n\n\n

Also, regular savings accounts normally only last a year – after that, your cash gets transferred into a bog-standard low interest account. So after a year, review the rate you\u2019re getting and move your money to a better rate if necessary.<\/p>\n\n\n\n

Children\u2019s \u2018notice\u2019 accounts<\/span><\/h3>\n\n\n\n

What are they? <\/strong>These are children\u2019s savings accounts that require you to give notice before you can withdraw your money. (The notice period is normally between one to three months).<\/p>\n\n\n\n

Who are they available to?<\/strong> Normally any child aged up to 18.<\/p>\n\n\n\n

Any limits on how much you can save? <\/strong>Some do, but many accounts have no limits at all.<\/p>\n\n\n\n

Pros:<\/strong> You may get a better rate of interest than an easy access account (though not always!)<\/p>\n\n\n\n

Cons:<\/strong> You need to give notice before you can access the money. You can often get a higher rate with a \u2018regular savings\u2019 account or even (depending on the market) some easy access accounts.<\/p>\n\n\n\n

Junior ISAs<\/span><\/h3>\n\n\n\n

What are they? <\/strong>Junior ISAs are tax-free savings accounts for kids under 18, designed to help them build a nest egg.<\/p>\n\n\n\n

Who are they available to? <\/strong>Any child under 18 (provided they don\u2019t have a Child Trust Fund). After they reach 18, their Junior ISA automatically becomes an adult ISA (and so remains tax-free).<\/p>\n\n\n\n

Any limits on how much you can save? <\/strong>The Junior ISA limit is \u00a39,000 in tax year 2023\/24.\u00a0 The money can go into a Junior Cash ISA, a Junior Shares ISA, or a combination of the two.<\/p>\n\n\n\n

Pros: <\/strong>Junior ISAs are tax-efficient, and you can pay in as much or as little as you like (as long as it’s under the annual limit).<\/p>\n\n\n\n

Find out about our award-winning Junior ISA, Beanstalk<\/a>, designed especially to help parents save for their kids. <\/strong> We’re also rated a top Junior ISA by Nuts About Money, in their review of the\u00a0best Stocks and Shares Junior ISAs<\/a> <\/strong><\/p>\n\n\n\n

Read our article about transferring Child Trust Fund to a Junior ISA here<\/a>. If your child does have a CTF and you would like to see if you could save money by switching to Beanstalk, here is our CTF Calculator<\/a>. You can find out more about JISAs here<\/a><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"We all want to save money for our kids\u2019 future \u2013 but where should you put your cash? Here we examine the different options so you can decide which one is right for you. Any parent knows all too well that raising children doesn\u2019t come cheap. But even putting aside just a few pounds a","protected":false},"author":1,"featured_media":14562,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3507,3349],"tags":[],"class_list":["post-10918","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-save-for-your-child-with-help","category-household-savings-advice"],"yoast_head":"\r\nJunior ISAs, Child Trust Funds, savings accounts: children's savings explained - KidStart Magazine<\/title>\r\n<meta name=\"description\" content=\"Read the article to find out what's the best option to save money for your kids\u2019 future\" \/>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.kidstart.co.uk\/blog\/junior-isas-child-trust-funds-savings-accounts-childrens-savings-explained\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_GB\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Junior ISAs, Child Trust Funds, savings accounts: children's savings explained - 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