Kids savings accounts, junior ISA

Are children's savings accounts tax-free in the UK?

Most children do not pay taxes on their savings because they are below the minimum benefit amount. However, it is important to note that children's savings accounts in the UK are not automatically tax-free. Here everything depends on many factors and there are certain features:

• Personal allowance: Children have the same tax-free personal allowance as adults.
• Junior ISA - this type of savings investment account does not provide for the collection of taxes from children.
• Parental Limits: If a parent gives money to a child and the interest is over £100, the interest may be taxable.

Therefore, if you are interested in tax-free child savings, we recommend that you pay attention to Junior ISAs with zero tax.

Calculate future income on a 1-year term deposit (example): 

What is the best savings account for a child?

All parents strive to give the best to their children. Savings bank accounts are no exception. Parents are looking for the best savings conditions for their daughters and sons. Therefore, we will consider the main parameters of different types of children's accounts:

• Junior ISA: Among the advantages of such accounts are the absence of taxes and constant growth of interest until the child's 18th birthday
• Children's Savings Accounts: High interest rates and easy access to regular deposits
• Regular Saver Accounts: Such accounts need to be replenished monthly, they help to develop a consistent habit of saving, which is important nowadays

Therefore, when choosing a children's savings account, compare interest rates, and terms of access to the account, if this factor is important to you, clarify questions about taxation. Also pay attention to the child's age, because there are separate programs for children under 16 and 18.

Are there grandchild ISA?

In the UK, there is no specific "Grandchild ISA" product. However, grandparents can contribute to a Junior ISA (JISA) opened in their grandchild’s name by the child’s parents or legal guardians.

A Junior ISA is a tax-free savings or investment account designed for children under 18. It allows parents, guardians, grandparents, or anyone else to contribute to the child’s savings.

Types of Junior ISAs:

• Cash Junior ISA. Works like a savings account where the money earns interest.
• Stocks & Shares Junior ISA. The money is invested in the stock market, potentially offering higher returns (but with higher risk).

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Details of companies offering the financial services:

Al Rayan Bank

Head office’s address: PO Box 12461 Birmingham B16 6AQ

Contact center: 0 800 4086 407

Phone: +44 129 889 0137

Web-site: http://www.alrayanbank.co.uk/

Swift code: ARAYGB22

Reference number: 229148

ABN: 04483430

BSB: ARAY

Barclays Bank

Head office’s address: 1 Churchill Place, London E14 5HP

Contact center: 0800-400-100

Phone: +44 (034) 5734 53 45

Web-site: http://www.barclays.co.uk/

Swift code: BARCGB33

Reference number: 122702

Stock code: BARC

ABN: 01026167

BSB: BARC

Coventry Building Society

Head office’s address: High Street

Contact center: 0800-121-8899

Phone: +44 (024) 7655 52 55

Web-site: http://www.coventrybuildingsociety.co.uk/

Earl Shilton BS

Head office’s address: 22 The Hollow, Earl Shilton, Leicester, LE9 7NB

Contact center: 01455-844422

Web-site: https://www.esbs.co.uk/

Halifax

Head office’s address: The Mound, Edinburgh EH1 1YZ

Contact center: 0345-720-3040

Phone: +44 (011) 3242 19 84

Web-site: http://www.halifax.co.uk/

Stock code: HALP

Hargreaves Lansdown

Head office’s address: One College Square South, Anchor Road, Bristol, BS1 5HL

Web-site: https://www.hl.co.uk/

HSBC Bank

Head office’s address: Unit 8, Canada Square, Retail, London E14 5AH

Phone: +44 345 740 4404

Web-site: https://www.hsbc.co.uk/

Swift code: HBUKGB4B

Reference number: 114216

Stock code: HSBA

ABN: 00014259

BSB: HBUK

Kent Reliance

Head office’s address: Kent

Web-site: https://www.kentreliance.co.uk/

Leeds Building Society

Head office’s address: Building, Hardman Boulevard, Manchester M3 3AQ

Web-site: https://www.leedsbuildingsociety.co.uk

Lloyds Bank

Head office’s address: 25 Gresham Street, London EC2V 7HN

Contact center: 0345-300-0000

Web-site: https://www.lloydsbank.com/

Swift code: LBGTGB22

Reference number: 119278

Stock code: LLOY

ABN: 00002065

BSB: LBGT

Nationwide

Head office’s address: Nationwide House Pipers Way

Contact center: 0800-30-20-15

Phone: +44 (034) 5730 20 15

Web-site: http://www.nationwide.co.uk

Swift code: NBSMGB22

Reference number: 106078

Stock code: NBS

ABN: 355B

BSB: NBSM

NatWest Bank

Head office’s address: 250 Bishopsgate, London, EC2M 4AA

Contact center: 0800-88-11-77

Phone: +44 345 788 8444

Web-site: https://www.natwest.com/

Swift code: NWBKGB2

Reference number: 121878

Stock code: GBP1

ABN: 00929027

BSB: NWBK

Newbury BS

Head office’s address: 90 Bartholomew Street, Newbury, Berkshire, RG14 5EE

Contact center: 01635-555-700

Web-site: https://www.newbury.co.uk/

Skipton Building Society

Head office’s address: 71 High Holborn, London WC1V 6EA

Phone: +44 20-7242-8147

Web-site: https://www.skipton.co.uk/

The Loughborough Building Society

Head office’s address: 6 High St, Loughborough LE11 2QB

Contact center: 01509-610707

Web-site: https://www.theloughborough.co.uk/

Vanguard Asset Management

Head office’s address: Level 4, The Walbrook Building, 25 Walbrook, London EC4N 8AF

Web-site: https://www.vanguardinvestor.co.uk/

Yorkshire Building Society

Head office’s address: 80 Fenchurch St, London EC3M 4BY

Contact center: +44-345-602-1885

Web-site: https://www.ybs.co.uk/