Children’s Current Accounts explained

Every parent would want his/her child to understand the value of money and would want to encourage the habit of savings. It is always wise to get your children interested in savings at a young age since it would have a positive impact on their financial habits later on.

Today, in the UK it is possible for parents to open children’s bank accounts which would give them an opportunity to learn more about the banks, about savings and the benefits of savings.

There are plenty of banks which do offer savings accounts to children. However children’s current accounts are not offered by all banks. There are only a handful of banks which offer this facility in the UK.

Children’s current accounts are not exactly profitable but they are useful since it introduces the children to the world of banking. These accounts are mainly used with the intention of incorporating a positive habit in the child at a young age.

Features and Terms and Conditions of Children’s Current Accounts

When it comes to children’s current accounts, there are only a few banks which offer this facility. For most banks, only children aged 11 and above can be eligible to get a current account in the UK.

Some banks also offer a cash card which can give the balance details to the child and would allow free withdrawals at the cash machines. Debit cards are generally provided only with parent permission and only to children aged 13 and above. These cards can be used to shop online or in land based retail shops.

Also, children’s current account would not go overdrawn since withdrawals of more than the account balance are not allowed. These were some of the main features of the children’s current accounts. However, individual banks might have their own terms and conditions which need to be looked into before signing up for a current account.

How to Open a Children’s Current Account

Given below are the steps for opening a current account for children:

• Parents would be responsible for the current account of their children and would have to first explain their child the purpose of opening up their current account and the basic details. The details of the bank should be shared with the child so that he/she can get an idea about how the banks operate and how they should operate their current account.
• Check all the banks in the town to see which banks offer children’s current account. If you go for the same bank where you have an account it would be the best option if the bank does offer this facility.
• As a parent, you would have to ensure that all the documents required are arranged for and kept ready before you apply for the bank account. An initial deposit would be required in all banks.
• Involve your child in the process and explain the documents which have to be signed. Also, explain how the account should be operated. An account number would then be allotted to the child.