Interactive Investor

Best Children's Savings Account 2015

29th December 2014 15:22

Mark King from interactive investor


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The most simple way to start a savings plan for a child is to use an instant-access savings account. While the rates you can obtain are – in this low interest rate environment – slender, these accounts are very low-risk and can help teach children about saving and interest. A great place to start would be the winner in this category, the Norwich & Peterborough Building Society's Family Young Saver account. It pays 1.75% gross and can be opened with as little as £1. "This account is paying a competitive rate of 1.75% and has been since October 2010 – so is certainly consistent," says Anna Bowes, director of, which helped Moneywise judge this year's awards. "Children aged seven or over can open the account themselves – and parents, grandparents and guardians can save on the child's behalf from any age, as a trustee." The account can be opened in branch or by post and, once set up, can be managed online. Another good choice is our runner-up, the highly commended Lloyds/TSB Young Savers Account, which has paid a whopping 3% interest for over three years. Indeed, the account would have been the winner in this category were it not for the fact that in order for a child to open it their parent or guardian also needs to have a Lloyds or TSB current account. "The account is paying a market-leading 3% AER and has been since its launch on 15 August 2011 – so it has remained consistent, even though savings rates have been plummeting," says Bowes. "The balance on which this highly competitive rate is paid is also quite high at £20,000."

Best children's savings account 2015

Winner: Norwich & Peterborough Building Society Family Young Saver Current rate: 1.75% gross/AER Age Range: Under 18 Interest paid: Annually Minimum deposit: £1 Maximum balance: £1 million Access: Easy Access. Open and save in branch, by post. Manage online also. Access your savings with a cash card Contact: 0845 300 2511 commended: Lloyds/TSB Young Savers Account

This article was originally published in our sister magazine Moneywise, which ceased publication in August 2020.

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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