Everything you need to know about kids' bank accounts
Banking basics · 18 October 2024Team Revolut
Opening a bank account for your child is more than just a milestone — it's a building block that lays a foundation for their future. Kids' bank accounts offer a hands-on way for children to learn about saving, budgeting, and the value of money, all while fostering a sense of responsibility and independence.
If you're new to the world of children's bank accounts, you probably have tonnes of questions — and we're here to answer them. In this guide, you'll learn how to open a bank account for your kid and discover powerful ways to use it as an educational tool.
Curious about alternatives to traditional children's bank accounts? Keep reading to find out more about Revolut <18, a digital kids' account with a money management app designed specially for them. With easy-to-use analytics and savings tools, they can learn the basics of banking in a fun and safe way.
What are children’s bank accounts, and how do they work?
Children's bank accounts are similar to current accounts for adults, but they're adapted for minors under 18, with age-appropriate security measures. As a parent or guardian, you usually need to give your authorisation for your child to open an account. You can also monitor your kids' transactions, set spending limits, and turn certain features on or off.
Children's accounts generally come with a debit card, so your kid can make purchases in shops and online. They can also withdraw cash at ATMs, sometimes with certain limits, and receive payments in their account.
One main difference between kids' accounts and standard current accounts for adults is that children's accounts don't have overdrafts. This offers extra protection to keep kids from going into debt. Many accounts for minors also have low maintenance fees or none at all, which makes them very accessible.
Kids' accounts teach children the basics of banking in a safe environment. Through practise, they learn how to track their spending, create a budget, and save for specific goals. Some banks also offer additional educational resources, such as online games and guides designed to help children understand financial concepts.
What are the benefits of children’s bank accounts?
Children's bank accounts obviously have tonnes of practical benefits, but there's even more to them than meets the eye. They're also powerful educational tools that help kids develop the hard and soft skills they'll need in the future.
- They provide hands-on experience with money management.
There's no better way to learn a skill than by practising it. Having a bank account from a young age lets kids learn about saving, spending, and the value of money through experience. - They help kids develop healthy financial habits.
They often come with tools that allow kids to set savings goals and track their spending. This teaches them the importance of planning and self-control. - They foster independence and confidence.
By managing their own money, kids can learn to make their own financial decisions and develop confidence in their financial skills. This makes them less likely to rely on others for support in the future. - They provide age-appropriate guardrails.
With parental controls and security features for minors, these accounts provide a safe space where kids can learn to manage their money. - They usually come with fun financial literacy resources.
Kids' accounts often come with tools designed to teach money management in a way that even the youngest kids will find enjoyable — think games, stories, colourful illustrations, and more.
📚 Curious about financial education? Explore financial literacy resources for kids and money management for teens.
Opening a children's bank account — all your questions answered
Ready to open an account for your kid? Let's go over some of the basics so you know what to expect.
At what age can kids open a bank account?
Age requirements vary from bank to bank, and some banks may even have different account options for kids in various age groups, all the way up to 18 years of age. Some banks in the UK allow you to open a bank account for kids as young as 6 years old, but banks like Barclays and HSBC require your child to be at least 11.
While most banks usually have minimum age requirements for children's bank accounts, there are some exceptions. For example, Santander's 1|2|3 Mini account is available for all children under 17. If you want to open a bank account for an infant and start setting money aside for their future, this is one option to look into.
What do I need to open a kids' bank account?
Different banks may have different requirements, but here's what you'll usually need to open a children's bank account:
- your ID
- a valid form of ID for your child, like their passport or birth certificate
- proof of address for both you and your child, like a utility bill, bank statement, or official letter
- a completed application form with your signature
- contact details such as your phone number, address, and email
How to open a kids' bank account
Opening a bank account for a child in the UK is generally quite simple. Specific requirements may vary, but here's a quick step-by-step guide to set you off in the right direction.
- Choose the right account for your kid.
Look into different banks and fintechs to find the best choice. Decide what's important to you and hone in on the options that'll meet those needs. Don't know where to start? Check out our guide to UK bank accounts for kids and compare some popular options. - Check eligibility requirements.
Make sure that your child is old enough for the account you want and that they meet any residency requirements the bank may have. - Gather all the necessary documents.
These may vary depending on the bank, but you'll usually need ID for yourself and your child, as well as proof of address. - Fill out the application form.
Some banks allow you to submit your application online and upload the necessary documents, but others require you to visit a local branch. In either case, they'll generally ask you for your contact details and other basic information. As the parent or guardian, you'll need to sign the application. - Set up the account.
This may involve downloading a mobile banking app or making an initial deposit. At this point, you may also be able to customise certain features or order a debit card for your child. A bank representative can guide you through this process. - All set!
Once the account is activated, teach your child how to use it responsibly. Help them set savings goals, create a budget, and track their spending under your supervision.
What happens to my child's bank account after they turn 18?
Most banks will automatically convert your child's account to a standard account for adults on their 18th birthday. They'll usually notify you about the change before it happens. Review the new terms and conditions carefully with your child, and contact your bank if you have any questions.
Once they turn 18, your child will have full control over their new account. They may also get access to additional features they didn't have before, like overdrafts or credit cards. By then, you'll have taught them well, and they'll be ready to manage their money independently.
What alternatives are there to children’s bank accounts?
If you're looking for a straightforward children's bank account, a quick run to your local branch may do the trick — but maybe a current account isn't quite what you want for your child.
Maybe you want to grow their savings with interest, or you want them to have a debit card on hand in case of an emergency. Maybe you're interested in digital alternatives that give them access to more financial literacy tools.
Whatever the case, there's lots to explore. Check out these other money management tools for kids.
Revolut <18: an app-based account for kids and teens
If you're looking for a digital children's account with kid-friendly money management tools, check out Revolut <18. Unlike typical high-street banks, Revolut is an e-money institution in the UK that's entirely app-based. Revolut <18 gives kids and teens between 6 and 17 an app designed specially for them, so they can practise managing their own money under your supervision.
Revolut <18 is set up as a subaccount that's linked to your personal Revolut account. This makes it easy to send them their allowance in a tap or give them a regular 'payday' with recurring top-ups. Your kid will get their own debit card to spend the money in their account, and they can even customise their card design for a small fee.
The app comes with intuitive analytics tools, so they'll be able to see where their money's going and where they can cut back. Once they turn 13, they'll be able to send money to other Revolut <18 peers and settle bills with friends more independently.
There are also fun features like Revolut <18 Earn, which lets you set challenges in-app and determine how much money they'll make when they finish them. It's a fun way to get them to clean their room and empower them to see work as a rewarding opportunity.
To teach them that little savings make a big difference, you have Pockets and spare change round-ups. Pockets is a feature that lets them customise their own savings compartments and track their progress towards specific goals. With spare change round-ups, your kid's card purchases are rounded up to the nearest whole number, and the difference is automatically saved in the Pocket they choose.
And of course, you're always in control. Right from your app, you can set spending limits, freeze their card, set up trusted contacts for transfers, and more. Their account is also protected by advanced security features designed for minors, with blocks on gambling, cigarettes, and alcohol. Once they turn 18, they can switch to a personal Revolut account.
There are no set-up or monthly subscription fees for one <18 account, so you can teach them to budget, on a budget. All you have to do is download the main Revolut app and sign up. Then go to Accounts ⇾ Add new ⇾ <18 account and follow directions. It'll just take a few minutes.
All in all, this is a money app that both you and your kid are sure to love.
Children's savings accounts
If your main goal is to start saving for your child's future and show them how to grow their money over time, a kids' savings account with interest might be the way to go. In the UK, there are various types of Junior Individual Savings Accounts (ISAs) to choose from. These are generally long-term, tax-free savings accounts specifically for children under 18.
Cash Junior ISAs allow you and your child to save money in a bank account, with interest rates that are generally higher compared to regular savings accounts. With other types of Junior ISAs, your money is invested in stocks and shares. These can offer even higher returns, but keep in mind that they carry some level of investment risk.
If you're looking for flexibility, there are lots of instant access savings accounts for children. These allow you to withdraw money whenever you need. They usually have low minimum balance requirements and little to no maintenance fees, which makes them very accessible.
Children's savings accounts are also more flexible when it comes to minimum age requirements. They're worth looking into if you have a baby or a toddler who's not old enough for a kids' current account just yet.
Prepaid debit cards for kids
Prepaid cards can come in handy if you feel your child is still too young to manage their own bank account, but you still want them to have a debit card on hand. These often give you a bit more control over your kid's spending, while still allowing them to practise their money management skills. They're a great first step towards financial literacy.
You decide how much money you want to load onto the card, and your child can then use it for purchases. There's no overdraft with these, so you can allow them to spend without the risk of debt. Some providers like GoHenry and Starling Kite offer a kids' app, where your child can track their expenses and explore additional educational resources.
Revolut <18 is another option to check out. This kids' account comes with a debit card that's just as customisable as prepaid cards for kids, plus loads of additional features. You decide the amount that goes into their account, so they'll never overspend. You can also toggle off ATM withdrawals, set payment limits, freeze their card, and more.
Once they're old enough, you can give them more freedom by enabling Apple Pay or Google Pay, as well as payments to other Revolut <18 peers. Whereas some prepaid card providers appeal mostly to younger children, Revolut <18 is an account that'll 'grow up' along with your kid — and one they'll want to keep using well into their teen years.
Teach your kid to manage their money with a Revolut <18 account
Want to give your child the financial education tools they need? Sign them up for Revolut <18 and empower them with just the right amount of financial freedom.
With everything from their own custom debit card to in-app analytics and savings tools, they can start taking ownership of their money management early on. You decide what they're ready for, with customisable parental controls and spending insights that keep you in the loop.
Join 3 million families worldwide who trust Revolut, and teach your kids good financial habits through hands-on practise.
Sources
The general trends described in this article are based on an analysis of the following children's accounts and money management tools. For a more in-depth comparison, check out our guide to children's bank accounts.
Information is provided by Revolut Group Holdings Ltd Registration No. 12743269 UK but is not liable for any of the claims, offerings, or services described herein, nor are the representations made or opinions expressed in this topic the views and opinions of Revolut Group Holdings Ltd or Revolut subsidiary companies registered and licenced to provide Revolut products in local countries. For more information about Revolut and current product offerings in your local country, please visit https://www.revolut.com/.