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By Melanie Aspden – Savings Product Manager at Hinckley & Rugby Building Society explains why a higher-rate children’s regular savings account could be the smarter choice for building a meaningful pot.
Saving for a child’s future is one of the most rewarding financial decisions you can make.
Whether it is for their first car, university costs or a first step onto the property ladder, the earlier you start, the bigger the potential benefit.
Yet many families default to an easy access account. It feels flexible, but it often pays a much lower interest rate than other options. Analysis of Bank of England data in March 2025 suggests around three quarters of the money in savings accounts earned less than 2.25%. Over time, that can mean missing out on significant interest.
A children’s regular saver account can change that. It offers a better rate in return for building a pot over time, while still giving you the flexibility to add money when it suits. Here are five ways the right account could work harder for you and your family.
1. Earn more interest without losing all flexibility
Easy access accounts are great for dipping in and out, but that convenience often means a lower rate. A regular saver account typically offers more, and you do not always have to commit to fixed monthly deposits.
With our Children’s Regular Saver, for example, you can open the account with just £1, add up to £250 a month, and choose when to pay in. You also get a stronger rate than our instant access Young Saver account, giving your money a better chance to grow.
2. Build savings discipline with a light touch
Because withdrawals can only be made when the account is closed or when the child turns 18, the temptation to dip into the pot is reduced. This helps the savings stay on track for bigger goals.
The account can be opened and managed by a parent, guardian or relative. However, if the child is aged 13 to 17, they can operate it themselves, which creates a great way to build financial awareness early on.
3. Use the account for specific milestones
Regular savers work best when there is a clear goal in mind. Whether you are aiming for education costs, a first car or a house deposit, these accounts are designed to hold the funds until they are needed.
Because our Children’s Regular Saver can remain open until the child is 18, it suits longer-term goals without the pressure of a fixed term.
4. Avoid the trap of low-interest rate inertia
Research in March 2025 by One Poll, found almost half of savers do not know their interest rate, and nearly a third have stayed in the same low-paying account for more than 11 years. That level of inertia is easy to slip into, but switching can make a real difference over time. A regular savings account provides a clear upgrade and encourages a healthy savings habit.
5. Keep contributions manageable
You do not have to commit large sums for the account to be worthwhile. Even modest monthly amounts can add up over several years, and the higher interest rate helps those savings grow faster.
With the option to pay in when it suits you, there is no pressure if one month is tighter than usual. The important part is keeping the account active and letting time do the rest.
If your current children’s savings account is underperforming, now could be the right moment to review your options. A better rate, paired with a structure that supports your goals, can make all the difference by the time your child reaches adulthood.
Speak to our friendly team
If you are a Hinckley & Rugby customer and would like to speak to someone about your savings – whether you’re starting out on your journey or looking to maximise your potential – we are here. Pop into your local branch and have a chat with our friendly customer assistants or drop us a line on 0800 4346343.
This article originally featured in The Money Pages.
