Video transcript

Savings accounts? Hmm, what are they? Something for adults to worry about surely…. Well, actually, children as young as seven can open a savings account. It’s a great way to keep your money safe, reach your savings goals, and build smart money habits. First, let’s get back to basics. What is a savings account? In a nutshell, it’s a safe place to keep money for saving towards a goal, planning for the future, or simply to make sure you always have some for when you really need it.

So, why open a savings account?

Banks are really safe places to keep your money, for a start. No chance your little sister can get her hands on your stash if you keep it in a bank! Savings accounts can also help you achieve your goals, like saving up for that game, by keeping some money separate from your day-to-day spending pot. Plus, banks will pay you for saving money with them using interest.

Interest? Hmm? That sounds interesting…

Interest on savings is an extra payment given to you for keeping your money with the bank. The more in your savings, the more interest you get. For example, if you save £10, the bank might add 10p as interest. If you save £20, they might add 20p instead. So, the more you save, the more the bank rewards you. See, told you it was interesting!

It sounds like there are lots of reasons for opening a savings account. Want to know how to get started? Your parent or carer will need to open a savings account in your name either online or in a branch. So there you have it. Savings accounts explained.

Have you got any savings goals? Maybe a brand-new set of wheels, or perhaps you’re saving for a new games console. If your answer is yes, then it could be a good time to open your very first savings account. Because you’re never too young to get started.