Children's savings accounts

A children’s savings account is designed to help build savings for a child under 18. Depending on the account, it can be used for regular saving, one-off gifts, birthday money or longer-term goals such as education, driving lessons or a first home.

At Nottingham Building Society, our children’s savings options focus on For Their Future for flexible saving and our Junior ISA for long-term, tax-free saving until age 18.

A Junior ISA is a long-term, tax-free savings account for a child under 18. The money belongs to the child, but they usually cannot withdraw it until they turn 18. In the current tax year, the Junior ISA allowance is £9,000.

Our Junior ISA can be opened in branch with £1 and allows both partial and full transfers in from another Junior ISA or Child Trust Fund. 

Yes. Parents, grandparents, guardians and other adults aged 18 or over can open a For Their Future children’s savings account on behalf of a child under 18. The account is held by the adult trustee for the benefit of the child or grandchild.

Only a parent or guardian with parental responsibility can open a Junior ISA for a child under 18. Grandparents and family members can normally pay into a Junior ISA once it has been opened, as long as payments stay within the annual Junior ISA allowance. 

The best way to save for a child’s future depends on your goal. If you want flexible access, our For Their Future may be suitable. If you want tax-free saving that is locked away until age 18, a Junior ISA could be a better fit. Many families use a mix of account types depending on how much access they need.

For the current tax year, the Junior ISA annual allowance is £9,000 per child. The allowance can be split between a cash Junior ISA and a stocks and shares Junior ISA, but the total paid in must not exceed the annual limit. 

You can open the account with £1 and continue adding money whenever you wish. The maximum balance permitted is £750,000.

Yes. Once the account is open, family members who wish to help save towards a child’s future can contribute, provided payments are made using the account details supplied by Nottingham Building Society and the payments are within the overall limits.

Yes. You can pay money into the account as often as you like, making it suitable for regular monthly saving as well as one-off deposits. Standing orders can also be used to automate contributions whilst remaining within the overall limits of the account.

Here's what happens when the child reaches 18 for our children's savings accounts:

Junior ISA
When the account holder turns 18, the rules specific to Junior ISAs will end. We will contact the parent/guardian and the child before their 18th birthday to discuss future saving options.

For Their Future
We’ll contact the trustee before maturity of the account (when the child turns 18) to explain the options available. If you still hold the account at that time, the savings will be transferred to an instant access account in your name.

We'll provide full details of the account, including the applicable terms, conditions and interest rate, before the transfer takes place. You'll then continue to hold the money on bare trust for the child until we receive further instructions from you. Take a look the product details for more information. 

For Their Future is opened by an adult trustee, but the money is held for the benefit of the child under a bare trust arrangement. The adult manages the account, but the money belongs to the child.

Bare trust’ is a legal term which describes how the money in the account is owned. Although the account will be in your name, the money in the account is held by you on behalf of the child you are saving for. This means the money in the account belongs to the child and when they reach the age of 18, they are entitled to decide what they would like to do with the money.

Junior ISA
The interest you'll receive will be tax-free.

For Their Future
The treatment of the account for tax purposes will depend on individual circumstances tax may be payable on any interest earned. For more information on how interest we pay to a bare trust for a child is treated for tax purposes, please visit HM Revenue and Customs’ (HMRC) website. The tax information provided is based on our understanding of current law and HMRC practice, both of which may change.

The amount you save depends on your circumstances and your goal. Some families save small amounts regularly, while others add birthday, Christmas or gift money when they can. Starting early can give savings more time to grow.

Yes. While the accounts are opened and managed in branch you can view the account online. You'll need to register for our online services in branch.