Best Current Account (NatWest Card Plus) |
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| Piggy banks are fine but bank accounts are better: they are more secure, they pay interest and they are harder to empty on a whim. Most banks and building societies now offer children’s current accounts, complete with monthly statements and cash cards, and NatWest’s Card Plus account is one of the best. |
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Children aged between 11 and 18 can open this account with just £1 and put aside as much or as little as they like. The account can be managed on the internet, by telephone or through the branch network and pays 3.15% interest, gross, per year.
While the NatWest account does not pay the most interest (that accolade goes to the Lloyds TSB Under 19s account at 3.3%), it has other advantages. Account holders get a Solo Cashcard that can be used in cash machines and as a debit card for purchases both here and abroad. And teenagers with pay as you go mobile phones can top using their cashcard at NatWest cashpoints.
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Budgets for Beginners |
Not all children’s bank accounts offer regular statement services - many rely on account holders reviewing their details online - but this one does issue regular statements and gives children a guide on how to manage money.
Older children can set up standing orders and direct debits, subject to their age and status (which generally means those over 16 with a regular income, whether from full-time or Saturday employment). This could enable them to put a regular amount aside into savings every month.
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Free to Travel |
But the real freedom for children is that this account gives them financial flexibility when travelling abroad. The card charges 75p per transaction plus an exchange rate fee of 2.65% for all shop purchases, but it’s there in an emergency if your child runs out of money abroad.
One final advantage: there’s no chance of your children running up a huge overdraft. Children’s accounts from most mainstream providers, including this one from NatWest, do not have overdraft facilities. The account does not offer a chequebook to under 18s. These accounts are all about training your children in good financial management. If a payment is made that sends the account into the red the bank returns it and charges £35 for the privilege. That’ll teach them.
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Pros
Instant access
Mobile phone top ups via the cash machine
Monthly statements
No overdraft facility!
Cons
Hefty charges should your children mis-manage their money
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