Best UK bank accounts for kids

How do your kids keep their pocket money? In the UK, more than half of parents put their children’s money into digital accounts instead of giving them cash. So, if you’ve been wondering whether bank accounts for kids exist, they do. Some are designed for daily spending, while others are  intended for long-term savings. What is the best bank to open a savings account for kids? And which option is better for everyday use? In this article, we’ll compare the top choices and explain the process of opening such an account.

Top Children’s Bank Accounts in the UK

To help you navigate the choices, let’s look at the most popular banking products for kids.

Monzo for Under 16s

If you’re a Monzo customer, you can easily open online bank accounts for kids directly in the app. The account will be linked to yours, but your child will also need to install the app on their device. Parents can control how much their kids can spend and withdraw each day from this account. They can also set up alerts to track all transactions.

This account can be opened for children aged 6 and older and upgraded to an adult account once they turn 16. There are pink, neon blue, and yellow card options available. Monzo is the best bank for kids’ savings accounts with 2.75% AER, up to a maximum of £10,000 per child. And the best thing about Monzo for Under 16s is that there are no fees for opening, maintaining, or using the account.

Starling Kite

Starling does not offer a separate kids’ savings account or current account. Instead, parents can get a debit card for their child that is linked to the parent’s account.

The card is designed for kids aged 6-15, who can use a simplified app for money management. The parents’ version of the app allows users to automate transfers, enable or disable online payments and ATM withdrawals, and block the card if it’s stolen. Parents can also set spending limits and track transactions. There are no fees for spending abroad, withdrawing cash, or depositing funds.

Nationwide FlexOne

Nationwide is a traditional bank that offers bank accounts for kids under 18. To be eligible, your kid must be between 11 and 17 years old. The account can be kept until age 23, after which it will be converted into an adult account.

Since this option is designed for teens, parental controls are more limited. Parents cannot track or block the card from their app, but contactless payments are limited to ?45, and gambling transactions are blocked by default. Kids aged 11 to 17½ can choose between a cash card and a Visa debit card. Older teens automatically receive a Visa debit card. The account offers a variable 2% AER on balances of up to £1,000. There is also an option to open bank savings accounts for kids with a 5% AER interest rate on balances up to £5,000.

How to Open a Bank Account for Your Child

Different banks may set their own rules for children's accounts, but generally, the opening process is similar. If you’re wondering, “How to open a bank account for my kids?” follow the steps below:

• Choose the right account. Start by researching the options available in the market. Today, you can choose between traditional banks with physical offices and digital-only banks like Monzo that offer feature-rich apps. Consider which option is more convenient for you.
• Check the eligibility criteria. Look at the age requirements and residency rules your kid must meet. Most banks allow parents to open accounts for children aged 11 or older, while digital banks may allow it from age 6.
• Prepare the required documents. Typically, you will need to provide your child’s birth certificate or ID, your own ID, and proof of address.
• Start the application. Traditional banks may require you and your kid to visit the branch, while digital banks allow you to upload documents online and add your child's account through the app. Either way, you will need to provide contact information and personal details. The application must always be signed by a parent or guardian.
• Set up the account. At this stage, you usually make the first deposit or install a mobile banking app. You may also be able to order and customise a debit card for your child.
• Activate the card. Debit cards usually arrive within 3–7 working days after approval. Then you can help your child set up a PIN code and connect the card to the mobile app.

Taxes and Bank Accounts for Children

Money in children’s bank accounts may be subject to tax. For the 2026/2027 tax year, children have the same personal allowance as adults, which is £12,570. In addition, they also receive the £5,000 starting rate for savings and a £1,000 personal savings allowance. This means a child with no other income can earn up to £18,570 in interest per year without paying tax. Since most children don’t earn more than £12k a year, they typically pay £0 in income tax.

However, there’s one exception. If the money is given by parents, step-parents, or guardians, the interest is treated as the parents' income and is limited to £100 per year before taxation applies. This rule does not apply to money given by grandparents or other relatives.

Are Prepaid Debit Cards Safe for Under-18s?

There are two main types of bank accounts for kids: savings accounts and current accounts. A third option is prepaid debit cards. These are often considered the safest alternative, especially compared to carrying cash. Parents retain more control over spending, and children cannot spend money if the balance reaches £0.

Prepaid cards also prevent children from building debt or paying overdraft fees because they are not linked to credit. If the balance reaches zero, the card is simply declined. Most prepaid cards also include strong security features.

Here are some tips for using prepaid cards safely:

1. Keep the balance low. Only top up the card with the amount your child needs in the near future. If a card is lost or stolen, you will lose only that limited amount.
2. Monitor spending in real time. Download the associated app to receive notifications about your child’s transactions and detect suspicious activity.
3. Set spending limits. Most apps allow parents to set daily, weekly, or monthly spending and ATM withdrawal limits.
4. Block certain categories. Many banks allow parents to block transactions related to gambling or alcohol retailers on a kids’ bank account.
5. Freeze the card if necessary. If a card is lost or stolen, you can instantly freeze it in the app. If it’s later found , you can unfreeze it. Otherwise, you can permanently block and replace it.

Conclusion

If you’re looking for the best bank account for kids in the UK, there are several strong options to consider. Opening an account for your child is more than just a way to store pocket money, it’s an opportunity to teach financial literacy. When children see their balance decrease after buying something, the lesson becomes more tangible than a simple explanation. Ultimately, the best account isn't simply just one with the lowest fees; it’s the one that helps your child understand the consequences of financial decisions.

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