A child under age 18 generally cannot sign legal documents, even to open a savings account. However, parents can open a bank account for their child, and when the child is old enough, let him or her take ownership of it. There are many benefits of opening a savings account for a child.
When can you open a child’s bank account?
16
Who can open a bank account for a child? Children can open their own current accounts when they turn 16, but if they are younger they will need a parent, guardian or grandparent to do this for them.
Can grandparents open a child savings account?
A grandparent can open a savings account for their grandchild in the child’s name as long as they have documentation, such as the child’s birth certificate. An advantage for grandparents is that no amount of interest earned on money they put in is subject to tax.
When to start a savings account for your child?
One useful way to teach about saving versus spending is by opening a savings account. But how do you know if your child is ready for one? You can open a bank account to save for a child when they’re at any age. When your child is very young, you can save the money they receive as gifts.
How can I get my child to open a bank account?
Paying money into your child’s account as pocket money or as a reward for completing jobs is a great step towards saving. Encourage your child to check their account once you’ve transferred money across, then ask them how much their balance or savings have grown. Having a reason to save is really motivating for children.
What can I do with my firstsave savings account?
Make the most of your money, and manage your savings and investments whenever it suits you. FirstSave offers you a choice of competitive online savings accounts: Easy Access, Notice or Fixed Rate Bonds.
When to teach your child to save money?
Once children start earning their own money, it’s time to teach them how to save. One useful way to teach about saving versus spending is by opening a savings account. But how do you know if your child is ready for one? You can open a bank account to save for a child when they’re at any age.
