What is a children’s current account?

A children’s current account is a great way to help kids get more hands-on with managing their money. These accounts work a lot like adult ones, with features like a debit card, payments by phone, direct debits and even interest earned on their money.

The key difference is that most children’s accounts have safety features built in for peace of mind. These can include spending limits and the ability for parents or guardians to monitor the account, and move money in or out. Also, they don’t usually come with an overdraft facility.

It’s a handy way to help under-18s develop smart saving and spending habits early on, while letting you keep an eye on how they are doing.

Why open a current account for my child?

While savings accounts and junior ISAs are great for stashing away money for the future, a children’s current account gives kids a bit more independence. It’s a hands-on way to manage their money, make spending decisions, and build smart money habits from an early age.

There are lots of perks to opening one:

  • Spending limits: There are often daily cash withdrawal and spending limits, so there’s less chance of them blowing it all at once.

  • No overdraft to worry about: They can only spend what’s in the account, which helps them learn to budget without the risk of going into debt.

  • Earn a little more: Some accounts pay interest, so they’ll see the benefits of saving even small amounts.

  • Cost-free banking: There’s usually no monthly fee.

  • Helpful alerts: Text or email notifications can give them a heads-up if their balance is running low.

  • Parental controls: You often get a say in things like whether they get a debit card and some allow you to view and move money around on the account.

  • Modern banking tools: Accounts typically come with online or app-based access, so kids can check their balance and move money around easily.

  • Contactless payments: Paying with their mobile phone or card means they don’t need to carry cash with them – one less thing to worry about!

And remember, they won’t be able to dip into an overdraft or access certain features that come with adult accounts. It’s all about giving them a safe place to learn the ropes of managing money while still having a grown-up’s support behind the scenes.

I already have a children’s current account – should I consider switching?

If your child’s current account has been ticking along just fine, you might not see much reason to move it. But staying put could mean missing out on features that help your child get more from their money.

Some children’s accounts come with stronger perks than others – like better interest rates, more user-friendly apps, or built-in tools to teach money skills. Others might offer fun savings rewards to help your child stay motivated. If their current account is starting to feel a little behind the times, switching could be a smart move.

How to pick the right kids’ current account

There’s no one-size-fits-all when it comes to children’s current accounts – what works best really depends on your family’s needs and what your child wants from their account. But here are a few things to keep an eye out for when you’re shopping around:

Look for good interest rates

A higher interest rate means your child’s savings can grow faster – a great way to encourage them to save more.

Check out extra perks and rewards

Some kids’ accounts come with cool bonuses, like cashback or rewards for saving. Little extras like these can make saving fun.

How easy is it to open?

Opening an account should be hassle-free. Some providers let you set up the account online or via an app, especially if you’re already a customer.

Parental controls matter

Some kids’ accounts allow spending limits to be set, and parents or guardians may be able to view and make payments from the accounts. These controls give you peace of mind while helping your child learn responsible money habits.

With these points in mind, you’re all set to find an account that suits your family and helps your child build smart money skills!

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Page updated on 20th September 2025, Reviewed by Richard Groom