Opening a savings account for your child is a smart way to teach them about interest: while money in a piggy bank sits idle, money held in a bank or building society can grow over time. The longer it stays, the more it compounds.
While budgeting apps aimed at children are excellent for showing them how to manage money in a fun way, many do not pay interest on savings (though some let you add interest manually).
By choosing a children’s savings account with a provider that avoids investing in environmentally or socially destructive practices, you can also teach your child that their money has an impact – for good or bad.
Below are five top ethical and socially conscious providers offering savings accounts for children and teens, including the newly-launched Monzo under-16s interest account.
Coventry Building Society
Account: Young Saver
Interest rate: 4.25 per cent /AER**/variable
Age: 11 to 17-year-olds
How is it ethical? Coventry is a B Corp and a mutual, committed to high standards of social and environmental performance.
Key terms: Minimum balance £1, maximum £5,000. Monthly deposit from £1 to £200. Withdrawals up to £100 in cash daily. Interest paid monthly. Only openable in branch.
Saffron Building Society
Account: Children’s Regular Saver
Interest rate: 4.20 per cent gross*/AER**/variable
Age: Under 17
How is it ethical? As a mutual, Saffron is owned by its customers. It is accredited by the Good Business Charter (covering environmental responsibility, ethical sourcing, etc.).
Key terms: Maximum monthly deposit £100.00. Open in branch or by post. Managed by phone or web chat (no full digital interface).
Leeds Building Society
Account: Ronnie the Rhino Youngsaver
Interest rate: 3.50 per cent gross*/AER**/ variable
Age: Under 18s.
How is it ethical? Leeds avoids investing in fossil fuels, runs its premises on 100 per cent renewable electricity, emphasises fairness and transparency. It holds a Gold Ribbon accreditation from Fairer Finance.
Key terms: Must open by branch or post (no online opening). Parent/guardian signature required. If balance drops below £10, rate falls to 0.05 per cent. Interest paid annually. Withdrawals: under 12s – unlimited £10 withdrawals; ages 13-17 – one withdrawal per week between £10 – £250.
Monzo
- Account: Monzo for Under 16s
- Interest rate: 3.00 per cent AER (variable) on savings for under-16s, paid monthly (interest accrues daily)
- Age: 6 to 15
How is it ethical? Monzo isn’t (yet) a mutual or B Corp, but it positions itself as a socially responsible business. It says deposits are invested “safely and ethically,” that it avoids artificial tax planning, and has a zero tolerance policy on modern slavery. However, independent ethical ratings organisations note that its ethical credentials are limited, with less transparency on wider lending or partnership practices.
How it works: Linked to a parent/guardian’s account. The parent legally owns the funds; interest counts toward their tax position.
Nationwide
Account: FlexOne current account
Interest rate: 2 per cent AER**
Age: 11 to 17-year-olds
How is it ethical? As a mutual building society, profits are reinvested for members; its asset mix is heavily skewed toward residential lending, which may reduce exposure to unsustainable corporate lending.
Key terms: Interest paid on balances up to £1,000. Ages 11–17 can choose a cash card or Visa debit card. No monthly fee. Account usable until age 23.
