Savings to help for the years ahead
Opening a children's savings account is a great way to prepare for your child's future. Whether you want to deposit a lump sum, or save regularly, we have a children's savings account to help build good savings habits for your children.
What is a children's savings account?
Children’s savings accounts work much like adult ones. Though there are a number of different options, they are all simple ways to set money aside for your child's future.
With some children’s savings accounts, children can manage their finances from as young as seven years old. This equips little ones with the skills to responsibly handle their money; skills that are sure to stay with them as they grow up and achieve financial independence.
Why should you open a children's savings account?
Whether it’s for university, driving lessons or their first home, saving for your child’s future is a great way to give them a helping hand as they approach adulthood. Many parents and guardians find that it's also a great way to teach children healthy savings habits and the importance of financial planning.
Opening a savings account for your children also gives them a head start in life. No matter what the future holds, having savings should put them in a better position. It also helps towards short-term and long-term goals, with options available for your child to access their savings when they want or wait until they are older.
How to apply
To open a children's savings account with us, you can apply in one of our branches (as detailed in the individual product information). Please click 'View full product details' on a product you’re interested in for more details.
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Open with: £1 and Invest up to £200 a month
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Take money out: anytime
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Variable rate of interest
Apply in branch
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Withdrawals are not permitted until the child’s 18th birthday
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Open with £1
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Variable rate of interest
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Transfers from other JISA providers are permitted
Apply in branch
Tax-free refers to the contractual rate of interest payable, where interest is exempt from income tax. The tax information provided is based on the current law and HM Revenue & Customs practice, both of which may change. AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest were paid and added to your account each year.
Gross interest is the contractual rate of interest, without the deduction of tax. AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest were paid and added to your account each year. It is your responsibility to pay any tax due, based on your individual circumstances.
Why choose Newcastle Building Society for your children's savings account?
We are your local building society based and focused on the North East and the surrounding areas. We're committed to making a positive difference to the people and areas that we serve, and because we don't have shareholders to answer to, we reinvest. We believe in human connections, that's why we are committed to our high street presence. Our branch colleagues know their stuff and are available to have meaningful conversations with customers about savings and financial needs.
FAQ about children's accounts
Grandparents can normally open regular savings accounts for their grandchildren. Documentation is needed like the child's birth certificate and the account is usually in the child's name.
There are some rules about who can open a Junior ISA. Grandparents can't open one unless they are the child's legal guardian or have parental responsibility. Only the child's parent or legal guardian is allowed to open the account.
You can open a savings account for a newborn, you'll just need to provide certain documentation such as the child's birth certificate. We'll also need to see a parent's documentation such as proof of address (like a bank statement or utility bill) and identification (like a passport or driver's license).
Typically, you don't need to pay tax on children’s savings accounts.
However, if your child earns more than £100 in interest, or any other investment income, the interest will be taxed. If this is the case, as the parent, you will have to pay.
The £100 tax-free limit doesn’t apply to money that’s gifted from grandparents, relatives and friends. Monetary gifts from anyone who isn’t a parent or legal guardian can earn up to £1,000 in tax-free interest.
Children’s savings that are in a Junior ISA or Child Trust Fund are not taxed.
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Saving for children
Whether it’s for university, driving lessons or their first home, saving for your child’s future is a great way to give them a helping hand as they approach adulthood.
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Junior ISA guide
From driving lessons to their first home, stowing away a nest egg for your little one is the perfect gift to help them later in life.
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Cash ISA guide
Take a look at our cash ISA Guide for lots of useful information on how an ISA can benefit you.