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Help your kids get to grips with money by opening a children’s current account

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05/12/2018
Opening a savings account is top priority for many parents when it comes to planning for their kids’ future.

But one thing savings accounts don’t do is give children experience of managing their own money.

That’s where current accounts designed specifically for young people come in.

A host of providers offer children’s current accounts and they work in the same way as adult accounts. The big difference is young people’s accounts don’t come with overdrafts, so there is no danger of kids racking up debt on games, music downloads or other purchases.

They also restrict how much money can be withdrawn from an ATM in one go.

There are currently 17 current accounts designed especially for under 19s on the market, according to financial information business Defaqto.

Eleven of these entry level current accounts even pay interest of between 0.5% and 3% on balances up to £1,000.

All offer digital banking, either online or via a mobile device or smartphone.

And all but one of the accounts offer text messaging alerts so that young people know when their balance is running low.

Brian Brown, head of insight at Defaqto, said: “We have a responsibility to the adults of tomorrow by teaching the children of today about good money management and how to avoid running into debt.

“Opening a young persons’ current account is one safe and effective way of doing this, giving children the opportunity to stick to a budget and manage their own spending without the worry of overspending and racking up debts.”

Here’s a list of all young person current accounts:

Provider Product Headline Interest Rate (%) Headline Interest Balance (1) Min Age Max Age Max. ATM W/drawal Contactless Payments Text Alerts Mobile Payments
B B Current (16/17) 0.50% £1 16 17 £500 Yes Yes Google, Apple
Bank of Scotland Under 19s Account 0.50% £1 11 18 £500 Yes Yes Google, Apple
Barclays BarclayPlus 1.10% £1,000 11 15 £300 Yes Yes Na
Danske Bank Danske Discovery (11-17) 0.00% na 11 17 £350 No Yes Apple, Samsung
Halifax Expresscash 0.50% £1 11 17 £500 Yes Yes Google, Apple
HSBC MyAccount 0.00% na 11 17 £100 Yes Yes Na
HSBC Premier MyAccount Ex/C 0.00% na 11 17 £100 Yes Yes Na
Lloyds Bank Under 19s Account 0.50% £1 11 18 £500 Yes Yes Google, Apple
Monzo Current Account 16/17s 0.00% na 16 17 £400 Yes No Google, Apple
Nationwide FlexOne 1.00% £1 11 17 £300 Yes Yes Na
NatWest Natwest Adapt 1.00% £1 11 18 £250 No Yes Na
Royal Bank of Scotland Revolve 0.55% £1 11 18 £300 No Yes Na
Santander 123 Mini Current Account 3.00% £300 13 18 £300 Yes Yes Google, Apple, Samsung
Starling Bank Current Account 16/17 0.50% £1 16 17 £300 Yes Yes Google, Samsung
Co-operative Bank Current Account (16/17) 0.00% na 16 17 £250 No Yes Google, Apple, Samsung
TSB Under 19s Account 2.50% £1 11 18 £300 No Yes Google, Apple
Ulster Bank Adapt Account 11-18 0.00% na 11 18 £250 No Yes na

NOTES: (1) Headline Interest Balance is the minimum balance required to get the interest rate shown.

 

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