HSBC child account review
HSBC accounts for children and teens are good options for both saving and day-to-day spending.
Perhaps you are looking for the most advantageous way to save money for your child’s future. Or you want to teach them how to save and be sensible with their finances. Or you are a teenager who believes it’s time for you to have a proper bank account.
Whatever the reason you are looking for a child account, HSBC has options to meet (almost) all needs. Let’s have a look.
What type of child accounts does HSBC offer?
HSBC offers three different child accounts, two of which are meant to be used by the kid or teen, and the other by an adult. They are:
- A children’s current account. For children and young people aged 11 to 17. Like all current accounts, this is for day-to-day spending, and comes with a debit card. It has no monthly fee, can be managed through the app, and pays no interest on balances.
- A savings account for kids. For children and teens aged 7 to 17. Savings accounts are just for putting money aside, so there’s no card and you can’t really use it to make payments. You can pay in as much as you like, anytime, and you can also withdraw money anytime. The interest rate is pretty good, at least on medium and low balances. If your child is 11 or older, they can get both the savings and the current account, which is a good way of teaching them how real-life banking works.
- A “future saver” account. This is also an instant access savings account, but it’s slightly different because it is opened by an adult who wants to save money for the benefit of a child. You don’t need to be the kid’s parent or guardian to open one, and there is no minimum or maximum balance, but the interest rate is less than stellar.
While this is certainly a comprehensive range of accounts, if you are looking for a card for day-to-day spending and your child is younger than 11, HSBC can’t really help. You can compare cards from other providers with lower age limits by having a look on this page.
How to open a child account with HSBC
All HSBC’s child accounts need to be opened in person at a branch. You will need to bring a proof of identity, and if your parent or guardian does not already bank with HSBC, a proof of address too. If you are under 16, your parent or guardian will also need to sign the application form.
For the future saver account, you will need the kid’s passport or birth certificate. If you are not the kid’s parent or guardian, you will need to get a proof of address from them.
How much does opening a child account with HSBC cost?
All HSBC’s child accounts do not have any monthly fees. For the current accounts, debit card payments and cash withdrawals are also free.
However, HSBC does charge a foreign transaction fee. If the kid uses the card on a trip abroad, they will be charged for every transaction or cash withdrawal.
Is opening a child account with HSBC safe?
HSBC is a fully licensed bank, meaning that it’s regulated by the Financial Conduct Authority and deposits are protected by the FSCS.
Its child accounts don’t have overdraft options (neither arranged or unarranged), so you don’t have to worry about the child going into debt. Unlike other children’s cards, HSBC’s debit card does not have much in terms of parental controls, meaning you can’t do much to limit how they use it or spend the money. ATM cash withdrawals are capped at £100 though.
Pros and cons of using HSBC for a child account
- Various kids accounts available, to suit a range of needs.
- Free to open, and almost no fees for using them.
- Children can manage the account from the app.
- The savings account for kids has a pretty good interest rate.
- No card or account for kids under 11.
- Little parental control options.
- You can’t open a child account with HSBC online.
Alternatives to children’s bank accounts
If a child’s bank account does not sound like the right idea, then there are other options available.
- Prepaid cards
As a parent you can purchase a prepaid card for your child. These are aimed for children aged 6 to 18. Parents can top up their child’s balance via an app, control where they shop and also can teach them about good money habits.
Learn more about children’s prepaid cards
HSBC’s accounts for kids and teenagers aren’t particularly sophisticated, but they do the job just fine. If you already bank with HSBC and you like to do all things money with the same bank, they make a practical, mostly fee-free solution.
There are only a couple of caveats. Firstly, the interest rate on the future saver account is not very competitive, so you might want to shop around for that one. Finally, your kid can’t get a debit card until they turn 11, so if you want to start early with personal finance education, you’ll need to look somewhere else.
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