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     Opening a bank account for your child can be an important step in teaching them about managing money. Accounts designed for children aged 11 and up often resemble adult accounts, making them a great tool for learning financial responsibility. Starting early helps them be better prepared for the future.

    How to Open a Bank Account for Your Child

    The process to open a bank account for your child can depend on their age. Typically, children can open an account with parental supervision, especially if they are younger. Accounts are usually opened in a bank branch. It’s important to compare different banks and the features they offer before deciding.

    What You Need:


    • Identification: Such as a passport or birth certificate
    • Proof of Address: Such as a parent’s utility bill or bank statement

    Are Children’s Bank Accounts Free?

    Most children's bank accounts are free to use and don’t charge monthly fees. They usually do not offer overdraft facilities, meaning there are no overdraft fees or interest charges. However, it’s wise to read the account terms to ensure there are no hidden costs.

    Features of Children’s Bank Accounts

    Children’s bank accounts offer many features similar to adult accounts, but with some restrictions. These accounts allow your child to:

    • Deposit money and cheques
    • Receive payments
    • Withdraw cash from ATMs with a cash card
    • Make purchases with a debit card (with parental permission if under 16)
    • Use a mobile banking app to manage their account

    However, they do not allow:

    • Overdrafts or any form of borrowing
    • Credit cards
    • Debit cards without parental consent (if under 16)

    Tax Considerations

    Usually, there is no tax on the interest earned in children’s bank accounts. However, there are exceptions based on certain circumstances, so it’s a good idea to check the details with tax authorities like HMRC.

    Choosing the Right Bank Account for Your Child

    When choosing a bank account for your child, it’s important to compare various banks and the features they offer. Don’t just settle for your own bank’s children’s account without checking out the competition.

    Things to Consider:


    • Interest rates on savings
    • Availability of a debit or cash card
    • Access to a mobile banking app
    • Special promotions or incentives
    • Local branch access
    • Daily withdrawal limits
    • Minimum age requirements for opening the account
    • Prepaid card options
    • Alerts for parents via text or email

    Savings Accounts for Children

    In addition to checking accounts, many banks offer savings accounts for children, which can be opened and managed by parents. These accounts allow parents to deposit money regularly and typically offer immediate access to funds.

    Parents can also consider Junior ISAs (JISAs), which have specific benefits:

    • Up to an annual limit
    • Funds are inaccessible until the child turns 18, at which point the account becomes an adult ISA
    • Choose between a Junior cash ISA or a Junior Stocks and Shares ISA
    • Parents can invest substantial amounts each tax year without paying taxes on the gains

    Conclusion

    Opening a bank account for your child is a crucial step in teaching them about money management. By researching and choosing the right account, you can help your child learn important financial skills that will benefit them throughout their life.