Young Savers
Young Savers
You're never too young to open a YOUNG SAVERS ACCOUNT. Our Young Savers Account is for young people who wish to start a savings scheme of their own. It is also designed for an adult who wishes to operate an account on behalf of a child.
You can apply to open this account online, by post, or at any of our branch and agency offices.
Summary Box - Key Product Information
| Account Name | Young Savers |
| Interest rates (AERs) | • The interest rate is variable – please click here to view the current interest rate |
| Tax Status | • Interest will be paid or credited after the deduction of income tax at the appropriate rate, or gross subject to the required certification. |
| Conditions for bonus payment | • There is no bonus with this account |
| Withdrawal arrangements | • Withdrawals can be made without notice or loss of interest • Up to 150 withdrawals are allowed during each year (ending 31 March) • More than 150 withdrawals will result in closure of the account • A minimum balance of £10 must be maintained |
| Access | • You can mange your account in branch, by post or online (if registered with our ‘My Accounts’ service and aged 16 years or over) |
Additional Product Information
• Minimum deposit of just £10 is required to open an account
• Maximum investment balance is £500,000
• You can add to your savings at any time by cash, cheque, standing order or direct debit
• Available to children under 18 years old
• When the account holder reaches the age of 21, the Young Saver account must be transferred to an alternative account with the Society
INVESTMENT AND WITHDRAWAL
A minimum deposit of just £10 is required to open an account. The account is very simple to operate. Just call into your local branch or agent with your passbook and deposit, or you can post it to us. If it is more convenient, you can save through a standing order from a bank account. You can also make regular credits by direct debit. You can add to your savings at any time and withdraw money without notice or penalty.
As this is a savings account (and not a bank current account) you are only allowed up to 150 withdrawals during each year (ending 31 March). If you make more than 150 withdrawals, we will write to you to close the account. Withdrawals can be made without giving notice and without penalty. You must maintain a minimum balance of £10 in your account, otherwise the account will be closed. Withdrawals of up to £350 in cash per day and larger amounts by cheque may be made from any of our branches or agents on demand, subject to withdrawal limits. A minimum balance of £10 must be maintained.
The savings passbook must be presented to us when any withdrawal is made. This will show the name of the person authorised to withdraw. In the case of young children, this will be an adult, who may at a later date transfer complete control of the account to the child. At that time we will require written instructions from the account holder and a specimen signature from the young saver. When the account holder reaches the age of 21, the young saver account must be transferred to an alternative account with the Society. We will write to you before this time explaining the options available.
INTEREST
Young savers will earn an attractive rate of interest even on very small balances. Interest on the balance will be calculated on a daily basis and will be credited to the account annually following close of business on 31 March. Annual interest statements will be sent to the registered signatory(ies) for the account each April. The interest rate is variable. For details of the current rates, please click here.
TAXATION OF INTEREST
Usually young savers are non-taxpayers and can receive interest without deduction of tax. To receive interest without paying tax you need to complete an R85 Registration Form available from any of our branch or agency offices, or your local Tax Office. Without this form, tax will be deducted before any interest is paid. Further details about taxation of interest are available on request.
A parent or guardian will need to sign a registration form to enable a child under the age of 16 to receive interest without the deduction of tax. On the 6th April following the young person's 16th birthday the registration will cease to be valid. The account holder may re-register for gross interest provided they have complete control of the account and comply with the registration conditions.
It is important that you read the 'General Terms and Conditions for Savings Accounts' before deciding to open an account.
>> Young Savers Terms and Conditions
>> General Terms and Conditions for Savings Accounts
>> Branch and Agency Withdrawal Limits
