Help your kids get to grips with money by opening a children’s current account
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They also restrict how much money can be withdrawn from an ATM in one go.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|
|Danske Bank||Danske Discovery (11-17)||0.00%||na||11||17||£350||No||Yes||Apple, Samsung|
|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|
|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.