{"id":369948,"date":"2016-10-06T15:56:34","date_gmt":"2016-10-06T04:56:34","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=369948"},"modified":"2026-02-04T11:03:27","modified_gmt":"2026-02-04T11:03:27","slug":"open-a-trust-account","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/savings-accounts\/open-a-trust-account","title":{"rendered":"Set up a secure financial future for your children with a trust account"},"content":{"rendered":"

Child trust funds were a government initiative for children born between 1 September 2002 and 2 January 2011. Children born after that date couldn\u2019t have a child trust fund but could open a junior ISA, or other types of account. <\/p>

Opening a \u201ctrust account\u201d on account on behalf of a child allows you to help pay for their education, or even give them the head start they need to put a deposit on a house. But what is a trust account, and what do you need to know before you open one? <\/p>

What\u2019s the difference between a trust account and a trust fund?<\/h3>

When some people hear the words \u201ctrust account\u201d they immediately think of a trust \u201cfund\u201d, which is actually a completely different thing. A trust account is a bank account that you open for your child; however, rather than opening the account in your child\u2019s name, you retain ownership of the account. A parent or grandparent can be the trustee for the child\u2019s account, but once the child turns 18, control of the funds in the account will pass to them.<\/p>

Meanwhile, a trust fund is a legal arrangement in which the ownership of a person\u2019s assets (not just cash but shares, bonds, property and even antiques) is transferred to a family trust and managed by trustees for the benefit of others. Any person who receives cash, property or other assets from the trust is known as a beneficiary.<\/p>

Family trusts are usually only considered as an option for managing a child\u2019s future finances when you have substantial assets to invest. Once the child reaches a certain age, for example 18 or 21, they can access the assets in the trust fund.<\/p>

\n
\n

\n \n \n <\/circle>\n <\/path>\n <\/svg>\n <\/span>\n Looking for a kids' bank account instead?<\/span>\n <\/h4>\n
\n

If you\u2019re looking to give your children a good financial start, it might be worth looking into a children\u2019s bank account. Take a look at our children\u2019s banking guide<\/a> to find out more.<\/p>\n <\/div>\n <\/div>\n<\/div>\n

What type of trust account?<\/h3>

When opening a trust account for a child, you could consider a savings account or a term deposit account. High-interest online savings accounts<\/a> offer some of the best interest rates around, allowing you to grow your balance as quickly as possible. Some even let you earn bonus interest if you satisfy specific conditions, such as depositing a minimum amount into the account each month.<\/p>

Meanwhile, fixed-rate bonds<\/a> provide the security and consistency of guaranteed returns. These accounts let you lock in a fixed interest rate for a prearranged time period, for example one or two years. This means you won\u2019t be affected by any interest rate drops that occur, but you won\u2019t be able to enjoy the benefits of any rate rises being applied to your deposit. It also entails locking the funds away in the account (they can\u2019t be accessed until the end of the fixed term).<\/p>

How to open a trust account<\/h3>

Banks and building societies around the UK offer a variety of savings accounts that you can open in trust for your child. There are typically three ways you can apply to open an account in trust:<\/p>