Compare children's savings accounts
Woman Playing With Baby Man Holding Baby

Children's savings accounts vs Junior ISAs: what's the difference?

When it comes to saving for a child, you'll often come across two common options: children's savings accounts and Junior ISAs.

Both are designed to help build money for a child's future, but they work in different ways. Understanding the basics can help families decide which type of account best suits their needs and savings goals.

First things first: what's the same?

Both types of account are designed to help adults save money for a child.

People often use them to save towards:

  • Education and future opportunities.
  • Driving lessons.
  • Travel and adventures.
  • A first home.
  • Whatever future aspirations a child may have.

Both can also help encourage conversations about money and saving from an early age.

Now, what's different?

Children's savings accounts

A children's savings account is a savings account that helps adults save on behalf of a child.
These accounts can offer flexibility, allowing money to be added over time and, depending on the account, accessed if needed.

They may suit families who:

  • Want flexibility
  • Like the idea of saving little and often
  • Want family members such as grandparents to be involved
  • Want access to the money if circumstances change

Think of it as...

A savings pot that can grow alongside a child, while offering flexibility for the adult managing the account.

Junior ISAs

A Junior ISA (Individual Savings Account) is a type of savings account designed specifically for children up to the age of 18. One of the key features of a Junior ISA is that the money is generally locked away until the child reaches adulthood.

They may suit families who:

  • Are saving for the longer term.
  • Don't need access to the money before the child grows up.
  • Want the money set aside specifically for the child's future.
  • Like the idea of building a dedicated future savings pot.

Think of it as...

A savings pot that's focused firmly on the future and intended to stay untouched until the child is older.

Children's savings account or Junior ISA?

The answer depends on what you're trying to achieve.

  • "I want flexibility." - children's savings accounts.
  • "I may need access if plans change." - children's savings accounts.
  • "I want money set aside for much later." - Junior ISA.
  • "I'm saving towards adulthood and future milestones." - Junior ISA.
  • "Grandparents or wider family want to get involved." - children's savings accounts can often provide flexibility for wider family involvement.

Here’s an example

Grandparent A wants to put away birthday money and occasionally help with costs along the way if needed.

Grandparent B wants to build a savings pot specifically for when the child becomes an adult.

Neither approach is right or wrong - they're simply different ways of thinking about future savings.

It's not always one or the other

Some families choose different ways to save at different stages of a child's life.

What matters most is finding an approach that feels right for your circumstances, goals and the child you're saving for.

The important thing isn't necessarily how much you save - it's getting started and building positive savings habits over time.

Looking at children's savings options?

At Nottingham Building Society, families can learn more about both our For Their Future and our Junior ISA, each designed to support different savings needs and future goals. Both are available to open in branch, where our colleagues can help explain how they work and answer any questions.

Whatever their future looks like, starting a conversation about saving today could help create opportunities tomorrow.

Read more children's savings guides

Teaching kids about money

You don't need to be a financial expert to teach children about money. Simple conversations and everyday experiences can help children learn the value of saving, spending and making choices.

Teaching kids about money

Saving for grandchildren

There’s something special about helping a grandchild prepare for their future. Whether it's a few pounds tucked away each birthday or a little extra at Christmas, saving for a grandchild can be a meaningful way to support them as they grow.

Saving for grandchildren

Last updated on: