Lloyds is one of the biggest UK banks and its accounts for children and teenagers are suitable for a range of needs.
If you are considering Lloyds for your child’s bank account but are not sure whether it really is the best option, this page gives an overview of what accounts are available, what fees it charges and what perks it includes.
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Lloyds offers both current accounts and savings accounts that are specifically designed for children and teens. Just like adults, children need a current account if they want to manage daily expenses, and a savings account if they want to put money aside for a rainy day while earning interest.
Here’s what Lloyds offers:
A current account. This can be opened by kids aged 11–17. It comes with a debit card or a cash card (this is for cash withdrawals only) and pays a small amount of interest on balances up to a limit.
A savings account. Lloyds’ Child Saver account is designed for adults who want to save in trust for a child’s future. It pays a fairly decent interest rate, although rates are tiered, depending on how much you’ve saved (a lower rate is paid on higher amounts). As it’s an easy access account, money can be withdrawn at any point. The account can be opened for a child aged 15 or under. You don’t need to be the parent or guardian of the child to open it, but you will need their permission.
A spending account and savings account in one application. Lloyds also offers Smart Start which is an option for children aged 11 to 15 who want to save, spend and learn with parental oversight. They will get their own Spending Account and Savings Account in the one application. Interest is paid on the savings account and parents can keep an eye on their child’s spending account through their own mobile app or internet banking. Parents must be existing Lloyds current account holders to qualify.
A junior cash ISA. This is a tax-free savings account that locks the money away until the child turns 18. The interest rate is quite competitive.
Unfortunately, Lloyds does not have any current accounts for children younger than 11. While this type of product is not normally available from traditional banks, there are a few prepaid cards for kids with lower minimum age limits and you can compare them on this page.
The current account also offers some useful budgeting and savings tools. You can categorise your spending and create a monthly budget, as well as automatically round up your transactions and save the spare change by moving it to a savings account. The spare change feature becomes available once the child turns 16 and becomes eligible for Lloyds’ standard savings accounts.
How to open a child account with Lloyds
If the child is at least 13, the application process for the current account can be started online, but you will need to visit a branch to have your documents checked. If the child is 11 or 12, the application will have to be done entirely in person.
Depending on the child’s age, the documents required are different:
For 11- to 15-year-olds. You will need both the child’s ID and a parent or guardian’s proof of identity and address.
For 16- and 17-year-olds. They don’t need a parent or guardian to apply, but will need to present their own proof of ID and address.
You can apply for Smart Start online, while the savings account and the junior ISA can be opened both online and by popping into a branch.
How much does opening a child account with Lloyds cost?
All the accounts are free to open, with no monthly fees. For the current account, cash withdrawals and card payments are also fee-free, unless made abroad.
As Lloyds charges a foreign currency transaction fee, if your kid is going on a trip abroad or your family often goes on holiday outside the UK, be prepared to be charged for every card payment or cash withdrawals.
The limit on cash withdrawals from an ATM is £500 a day.
What does the Lloyds app look like?
Is opening a child account with Lloyds safe?
Lloyds is a fully licensed bank, regulated by the Financial Conduct Authority (FCA) and deposits are protected by the FSCS.
Overdrafts are not available on children’s accounts, so there’s no risk that a child might accidentally get into debt.
Pros and cons of using Lloyds for a child account
Pros
Get a standard current account that does almost everything an adult’s would, for no monthly fee.
Children can manage the account online or using the mobile app.
The current account pays a small interest rate.
Additional money management features, such as the ability to save your spare change and see a breakdown of your spending.
Pretty good interest rates on children’s savings accounts.
Cons
No current account or prepaid card for children under 11.
Interest on current account balances only paid up to a set amount.
Parents must be existing Lloyds current account holders to qualify for Smart Start.
Customer service information for Lloyds
Email support
Telephone support
In-app or live chat
Contact form
Branch support
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.
With a good range of features, some interest paid on balances and very few fees, Lloyds’ current account is a good option to get your kids started with banking. Don’t forget about the foreign currency transaction fee if you travel abroad though, because it can get expensive pretty quickly.
While not the very best rates on the market, both the easy-access savings accounts and the junior ISA are quite competitive and make a good option to save for the long term. And if you’re looking to get your kids set up with both a current account and an instant access savings account, Smart Start could be a good choice.
Get started by visiting Lloyds Bank’s website and applying for an account. If you have read this review and decided that these accounts are not the right choice, you can also discover other bank accounts for children and the option of prepaid cards for kids.
Frequently asked questions
For the standard current account, Lloyds says it will move it to a standard adult current account “in the year of your 19th birthday”. However, you can switch earlier if you find a good deal. If you are studying, we would certainly advise you to do so. Student accounts usually come with great perks and fee-free overdrafts that are generally better than children’s accounts.
With Smart Start, the savings account will change to an adult Standard Saver after the child’s 18th birthday and the spending account will become an adult Classic Account.
The Child Saver savings account becomes a standard savings account once the child turns 16 (the interest rate will drop as a consequence). The junior ISA becomes a standard cash ISA when the child turns 18 instead (again, expect the interest rate to go down).
Lloyds’ current account for children only lets you earn cashback at selected retailers once you turn 18.
The current account is for children aged between 11 and 17. The Child Saver account can be opened by an adult looking to save for any kid aged up to 15. Smart Start is for 11 to 15 year olds. The cash ISA can be opened by an adult saving for a kid aged up to 15. A young person can open one on their own if aged 16 or 17.
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Valentina Cipriani was a writer at Finder UK. She wrote news, features and guides about banking and credit cards, helping people to improve their financial lives. She holds an MA in International Journalism.
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GoHenry gives financial independence to children and full control to parents. We look at how it works and what features it has to see if it’s worth the fee.
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