Which are the best current accounts for children?

When it’s time to choose your child’s first current account the easiest option is to just get the junior version of your own current account, but with many children’s bank accounts paying generous interest rates it can pay to shop around.

The main things you want to consider when looking for a current account for your child are that it is fee-free and has no overdraft facility so you child can’t run up any unexpected bills. After that you need to decide if you want your child to be able to shop with their plastic or not. Some accounts offer you the choice of a debit card or a simple cash card that can only be used at ATMs.

Another consideration may be an account that offers mobile banking so your child can keep an eye on their balance and a better track of what they are spending. You may also want to look for an account offering text alerts so you can get a text if your child’s balance dips below an agreed level.

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Finally, consider the interest rate. This may not be as important as on your own current account as your child probably isn’t going to have a large amount of money stashed in their account. But, a good interest rate will help them learn about the benefits of leaving their money alone to grow.

Nationwide’s FlexOne account tops tables for popularity and Which? magazine gives it its highest rating. The account is available to children aged 11-17. It has no charges and doesn’t let your child go overdrawn so they can’t rack up any unexpected bills. Account holders get a debit card they can use at ATMs and in shops. The account offers an interest rate of one per cent on balances up to £1,000, but if your child is likely to have a reasonable balance in their account there are better options.

An added attraction with Nationwide’s FlexOne account is that your child can open a linked regular saver account paying 3.5 per cent interest. This could be a useful tool to start teaching them about the benefits of saving.

Santander’s 123 Mini current account is available to children aged 11-18 and comes with a either a debit card they can use in shops, or just a cash card to use at ATMs. It offers a tiered interest rate depending on your child’s balance. If they have £100-£200 in the account they earn one per cent interest, £200-£300 it rises to two per cent and then three per cent on balances between £300 to £2,000.

The account offers a free text alert system so you can keep an eye on their spending and there is no overdraft option or fees.

Another good choice is TSB’s Under-19s account which pays 2.5 per cent on balances up to £2,500, again with the choice of a cash card or debit card. You can set up free weekly balance alerts so you can keep an eye on things. It also has a Save the Change system for getting your child into the savings habit, every time they use their debit card the amount is rounded up to the next pound with the difference put into a linked savings account.

An added bonus with this account is that when your child turns 17 they get discounts on AA driving lessons.