My daughter had a Halifax savings account for a number of years. However, the bank doesn’t offer a product/s, where she can earn interest and have a cash card so we had to look for something else.
Savings accounts with cash cards for children
A quick consultation with money saving expert Martin Lewis pointed me to HSBC’s MySavings account for 7-17 year-olds. It has an interest rate of 3% on balances up to £3000, which is the best on the market currently. From the age of 11 they can also have a current account (MyAccount). This account combined with the savings account forms a package called MyMoney.
MyAccount provides the all-important cash card (HSBC Visa Debit Card), which can be used in stores, online and at cash machines. You are able to transfer money into the current account from the savings account and vice versa. However, we’ll fund it separately with money that isn’t earmarked for savings. The current account doesn’t pay any interest so we won’t be putting too much in it. Our main objective is to save 🙂
Opening the savings account
For smaller branches, you’ll need to book an appointment as it takes about half an hour to set up (that was with me being an existing HSBC customer – it would take longer if you aren’t with the bank). If your child is under 16 you have to be present to open the account.
It was a good experience for Sofia. She answered quite a few know your customer (KYC) questions, signed an official document (she hasn’t had to use her signature on anything important before so this was pretty major) and filled in a paying in slip. Finally she had to go to the counter and make her first deposit on the new account.
Sofia can do internet, phone and mobile banking, which is very exciting stuff!
Key facts
- Get 3% interest on balances up to £3000 and then 0.75% interest on anything over that
- Open the account with just £10
- A current account is automatically opened on child’s 11th birthday so they get a debit card
- 7-10 year olds get a money box on opening the account
- Ages 11 and up can use online, mobile and phone banking to check their balance and send money between their savings account and current account
- With the current account they can only use/withdraw the money that’s in there
Find out more here: https://www.hsbc.co.uk/savings/products/mysavings/
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