Bank accounts and long-term savings

All children and young people in care should have two bank accounts:

• One easy- or instant-access account that lets them deposit or withdraw money at any time
• One long-term, tax-free savings account

If your foster child does not already have these accounts, you should help to set them up.

Easy- or instant-access accounts

If the child is under 16, the Money Helper guidance on bank accounts for children can help you choose the right easy- or instant-access account.

If you're looking after a young person over 16, they may be able to get a young person's current account or a fee-free basic bank account.

Long-term savings

The aim of long-term savings is to give children and young people in care a sum of money to support them when they leave care at 18 years old. This will help them with the costs of becoming independent, like:

• Setting up their first home or moving to supported accommodation
• Starting a college or university course
• Making a first big purchase — like a car or bike

£5 of your basic maintenance allowance should be paid in the child or young person's long-term savings account each week if you are providing:

• Short-term or long-term foster care
• Enhanced foster care
• Parent and child foster care
• Connected care

You should also help your foster child to make small savings each week or month from their pocket money or personal allowance.

Savings accounts

There are two long-term, tax-free savings schemes for children and young people:

• Junior ISA — for children born on of after 3 January 2011
• Child Trust Fund — for children born before 3 January 2011

Money can be paid into these accounts by the child, their family members and their foster carer.

The child or young person won't be able to access the money in these accounts until they are 18 years old.

Your foster child might already have a Junior ISA or a Child Trust Fund if:

• Their parent or guardian set up the account
• A previous foster carer set up the account
• They have been in care for at least 12 months, and Norfolk County Council has set up the account in its role as the corporate parent. Accounts set up by Norfolk County Council are managed by the Share Foundation.

If the child in your care doesn't have either type of account, you will need to help them set up a Junior ISA or regular savings account. The Money Helper guidance on bank accounts for children can help you choose the right savings account.

If you are unable to set up a bank account

You may find it difficult to set up a bank account for a foster child. For example, if they are an unaccompanied asylum-seeking child whose immigration status is unresolved.

If you are unable to set up a bank account for your foster child, you should discuss this with the child's social worker. They will work with you to find an alternative arrangement for saving the child's money. This will be recorded in the child's care plan.