Monzo Reveals Young Savers Could Be Missing Out on £162 Million Each Month as It Adds Interest to Under 16s Savings Accounts

Monzo will help the next generation of savers to grow their money faster, by introducing the ability to earn interest and a digital mascot to make saving feel more fun and rewarding.

The most requested feature from parents – interest on savings – is coming to Monzo’s Under 16s accounts in the next few weeks. Children will be able to earn 3% interest (variable) on their Savings Accounts as Monzo becomes the only UK provider to offer a free account for kids aged 6-15 where they can manage their own spending, saving and even earn interest.

 Kids will also get encouragement from a brand new digital mascot, the saving sidekick. The sidekick is an animated dog character that makes saving more fun by rewarding every single contribution – no matter how small – with lively reactions, helping kids build that “little and often” saving habit.

This comes as new research from Monzo reveals that Gen Alpha are a generation of “Piggy Bankers”, with 80% of 8-15 year olds saving at least once a month. But despite these efforts, the majority of young savers are missing out on up to £162 million* in interest every month by keeping their savings in cash or current accounts, instead of interest earning savings accounts.

At the same time, saving can still feel slow and unrewarding, as parents say for those who struggle, it’s their kids’ desire to spend their pocket money as the biggest barrier to building a consistent habit of putting money aside.

The temptation to spend regularly is strong for kids, with snacks and treats topping the list of pocket money purchases (57%). This is followed by in-game buys (40%) as spending pocket money on a new Roblox skin, for example, doesn’t even require leaving the house these days.

Saving is one of the most important life skills we can pass on to the next generation. Every parent wants to give their child a head start in life, but saving isn’t something you learn once – it’s a habit that takes time to build. With interest now added to Under-16 Savings Accounts and the savings sidekicks cheering them on at key moments, Monzo’s new features are designed to help kids turn saving into a lifelong habit.

Duygu Yenidogan-Schmidt, General Manager for Core Banking at Monzo said: “We know that saving can feel slow and unrewarding, especially when you’re a kid and the temptation to spend is everywhere. That’s why we’ve introduced some Monzo magic to help make saving feel good from the very first penny. Whether it’s seeing your money grow with interest or getting a salute from your saving sidekick, we want to cheer on the nation’s little piggy bankers and help them feel proud of every step they take towards their goals.”

Monzo for Under 16s is a free account designed to bring the best of Monzo’s money management tools to children aged 6-15. Bringing Monzo magic to a new generation, the account gives children the opportunity to experience financial firsts like saving, budgeting, receiving pocket money or using a card to pay in a shop, all while giving parents or guardians complete control and visibility to ensure they’re managing their money safely.

Parents can sign up their children now for Monzo Under 16s account ahead of these new features rolling out over the next few weeks by heading to https://monzo.com/current-account/under-16s

Monzo was named as Best Children’s Financial Provider at the British Banking Awards in 2025.