How can I save for my child's future?

There are many ways to contribute to a child's financial future including savings, investments and pensions.

The benefits of saving

Saving a little each month can help children learn about the importance of managing money in future. There are many benefits to opening a savings account for your child, including:

  • creating positive saving habits.
  • providing a safe place to keep money.
  • helping children set and work towards financial goals.
  • allowing children to earn interest, which can grow over time - even on small sums.
  • supporting future financial security.

Savings options for children

Parents and grandparents can help to encourage children to save early to create good money habits and afford special items. Over time the interest earned, even on small sums, can add up to create the deposit for a car or flat, or ensure a child’s future financial security.

 

Child Saver

Open with just £1. You can save and withdraw money when you like.

Child Saver account

Junior Cash ISA

A tax-free savings account is a great way for under-18s to start saving.

Cash ISA account
 
Woman and child with laptop

Looking for more?

Find more information and our full range of youth and student accounts.

Youth and student accounts

Investing in your child's future

We all strive to protect our children. There are steps you can take to plan ahead and provide them with financial stability in the future.

 

Child pension

Any parent or legal guardian can set up a child pension. The child can access these savings when they reach the age of 55. This is set to increase to 57 years old in 2028, and may change again in the future.

You can save up to £2,880 tax free in each tax year. The government then tops this up by 25%, taking your yearly total to £3,600. Any growth is tax free. Like any investment, your fund value can go down as well as up speak to a financial adviser about setting up a child pension.

You can learn more about Junior Personal Pensions from our partners at Scottish Widows.

Junior Personal Pension

Wills and inheritance

A will can set out financial arrangements for your children as they grow up. You can set out if you want to leave any money to them, or make them beneficiaries to any policies you may have. 

If you want your child to benefit from your will, you’ll also need to consider at what age you want them to receive full control of their inheritance. 

Read our making a will article

Child Trust Fund

If a child was born between 2002 and 2011, they might have a Child Trust Fund. These were replaced in 2010 by Junior ISAs, but existing accounts can still be paid into, or parents can transfer savings to Junior ISAs. 

The account can be managed by parents or guardians until the child reaches 18, at which point it can be cashed or transferred into an ‘adult’ ISA. 

Child Trust Fund Checker

Premium Bonds

Premium Bonds are savings bonds, which can be purchased for as little as £25. Issued by the UK government they offer tax-free prizes instead of interest. 

Bonds can be bought for children under 16 if you are their parent, legal guardian or grandparent, up to a maximum holding level of £50,000. 

Visit the NS&I site

*Information on this page correct as of April 2024.

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