Bank accounts for 16-year-olds are similar to current accounts. They allow for transfers, direct debits, and standing orders; however, like basic bank accounts, there are no fees or credit options such as overdrafts or loans.
It is common for teenagers to express their desire to "grow up" sooner and opening a personal bank account allows them to track their finances with a sense of freedom around their money. In the minds of teenagers, especially those who have part-time jobs, money earned through hard work somehow amounts to more. Therefore, since it's their own money, more thought is given to how it is spent.
For you to consider which bank account is best, we are going to review six UK bank accounts for 16-year-olds:
- Halifax Expresscash Account
- HSBC MyMoney
- Lloyds under 19's
- TSB under 19's
- Santander 1|2|3 Mini Current Account
- Starling Bank Teen Bank Account
Halifax Expresscash Account
The Halifax Expresscash accountis designed especially for young people. With international contactless abilities and free 24-hour online banking, opening an account enables young adults to manage and budget their money safely and securely.
Eligibility
11 – 17 year-olds
A parent or guardian must accompany their child to open an account if the child is between the ages 11 to 15 years old.
Interest Earned
| Your Balance | AER% | Gross | |
| For accounts opened before 23rd August 2021 | £1 - £2,499.99 | 0.50 | 0.50 |
| For accounts opened on or after the 23rd August 2021 | £1 - £999.99 | 0.50 | 0.50 |
Card types
Debit
Charges
Maintaining the account requires no fees.
Extras
- Withdraw up to £500 per day (subject to account conditions)
- Access to telephone banking
HSBC MyMoney
HSBC's MyMoney current accounts are designed especially for young people. The account comes with a contactless visa debit card, allowing users to purchase online and in-store. Setting up an account is simple; once documents such as proof of identity and address are given to the branch and approved, the bank account is ready.
At the age of 16, teens can set up their account in the branch without a parent or guardian, as long as they have the correct documentation, such as proof of identity and address.
Eligibility
11 – 17-year-olds.
To open a MyMoney account, 11 to 16 year old’s will need to provide proof of identity and address (for both themselves and their guardian) and be accompanied by a parent or guardian. If the parent or guardian is an HSBC customer, only proof of identity will be required. Over 16s must provide proof of identity and address if their parent or guardian is not an HSBC customer.
Interest earned
None on the current account, but MySavings / Premier MySavingscustomers can earn:
| Your Balance | AER% | Gross% |
| £1 - £2,999.99 | 3.00 | 2.96 |
| £3,000+ | 0.75 | 0.75 |
(Interest rates variable)
Card types
Debit
Charges
There are no monthly maintenance fees for the account.
Extras
- Users can withdraw up to £100 in cash
- Mobile and phone banking
Lloyds under 19's
Applying for a Lloyds Under 19's account is a simple process. Applicants can either choose a Lloyds Bank Visa debit card with contactless functionality for in-store and online usage, or they can opt for a Cashpoint card, which is only used for withdrawing money from ATMs.
Eligibility
11 – 17-year-olds
For ages 11 to 12, your child must apply in-branch, accompanied by a parent or guardian, providing proof of identity and address for both the child and the parent or guardian. 13 to 15 year old’s can complete their application online. However, they will still need to go to a branch with a parent or guardian. Both will need proof of identity. Additionally, the parent or guardian will need proof of address. 16 to 17 year old’s can apply online and then head to their nearest branch with proof of identity and address.
Interest earned
For accounts opened before 23rd August 2021
| Your Balance | AER% | Gross % |
| £1 - £2,499.99 | 0.50 | 0.50 |
For accounts opened on or after the 23rd August 2021
| Your Balance | AER% | Gross % |
| £1- £999.99 | 0.50 | 0.50 |
(Interest rates variable)
Card types
Debit / Cashpoint card
Charges
There are no monthly maintenance fees for an U19’s Account.
Extras
- Mobile alerts - Internet banking service (16-17 year old’s only)
- Save the Change (16-17 year old’s only)
TSB under 19’s
TSB's under 19's accountis designed specifically for young people, helping users' get clever' with their money. TSB is suited for first-time account holders, giving children the platform to understand and handle their money with the freedom of having their own accounts.
The save pennies scheme comes with a TSB under 19’s account. This allows card purchases to be rounded up to the nearest pound by taking the leftover change and transferring it into a savings account (subject to account funds).
Eligibility
11 – 18-year-olds
Interest Earned
| Your Balance | AER% | Gross% |
| £1-£2,499.99 | 2.5 | 2.47 |
| £2,500+ | 0.1 | 0.1 |
(Interest rates variable)
Card types
Debit
Charges
There are no charges for everyday transactions or for maintaining this account.
Extras
- Free weekly balance alerts
- Mobile and internet banking
- Driving discounts once 17, users can save £56 with the AA, receiving £36 off AA driving lessons, and a further £20 off pass plus?
- Withdraw up to £500 per day from any UK TSB machine
- High or low balance alerts
Santander 1|2|3 Mini Current Account
At Santander, young people must be between the ages of 13 and 17 to open a 1|2|3 Mini Current Account and can apply both in-branch and online.
Eligibility
11 – 18-year-olds
Interest Earned
| Your Balance | AER% | Gross% |
| £1 - £999.00 | 1.00 | 1.00 |
| £1,000 - £1,499.99 | 2.00 | 1.98 |
| £1,500 - £2,000 | 3.00 | 2.96 |
(Interest rates variable)
Card types
Debit or Cashcard (cashcard not available for accounts in trust)
Charges
Maintaining the account is free of charge
Extra
- £300 daily ATM withdrawal limit
- Online and mobile banking with text and email alerts
- Automatic text alerts when your account falls below zero, you have regular payments due on your account with insufficient funds, or when a payment is refused due to lack of funds.
- 1I2I3 World – When you open a 1I2I3 Mini Current Account, users become part of 1I2I3 World, giving access to a range of 1I2I3 Offers
Starling Bank Teen Bank Account
The Starling teen bank account is aimed at the tech savvy teen, an app based account that allows you to open an account in minutes, with tools at their fingertips such as instant payment notifications, and goal setting to help them keep track and manage their money.
Eligibility
The account can be opened with just a passport as ID for anyone aged 16 or 17, with 24/7 support in app, via e-mail or over the phone.
Interest Earned
| Your Balance | AER% | Gross % |
| Up to 85,000 | 0.05 | 0.05 |
Card types
Mastercard Debit card.
Charges
No fees or charges for this account.
Extra
-The card can be set up for Apple pay, Google pay and Samsung Pay.
- Instant notifications for money going in or out.
- Spending insights – Allows you to keep track of where your money goes
- Goals feature – helps with a healthy money mindset, learn to save for something specific.
- Lock and unlock your card in app.
Final thoughts
Bank accounts for 16 year old’scan help get your teenager accustomed to handling money responsibly, budgeting and starting them off with some savings options. And even though they will be able to open their own bank account at 16, it's worth spending some time with your teenager explaining the differing extras and perks available. Help them understand the importance of saving, how interest rates work and more.
Helping your teenager understand the basics of money and finances will mean they are better positioned to make sound financial decisions early on. Of course, you don't have to wait until they are 16 to help them decide what bank they should choose. You can consider a bank account for your childtoo.
Most of the bank accounts mentioned in this guide allow children as young as 11 to apply for an account, as long as a parent or guardian accompanies them, and both have the required documents. You could consider a prepaid cardfor kids account if you don't fancy a traditional bank account for kids and parents. For example, the Rooster Money Card or the Nimbl Prepaid Card are designed to help teach children about money while allowing parents to monitor spending.
