Savings Accounts

Young Savers Account

Availabilty

Only available if opened in person at a branch or agency, where you live.

The account holder/operator agrees to be bound by the rules of the Society (copies available upon request) and the terms and conditions stated on this website.

Minimum Investment

£1.00

Maximum Investment

£7500 in any one Young Savers account.

Additional Investments

You can add to your account at any time, subject to the maximum investment limit of £7500.

Interest

Interest is paid half yearly on 1st January and 1st July and is added to the account.

Withdrawals

You can withdraw your savings, providing the funds are for the benefit of the child. Withdrawals are available without notice or penalty in either cash or cheque, subject to Society limits. All cheque withdrawals should be made payable to the child, however, in appropriate circumstances may be made payable to a third party providing the funds are for the benefit of the child.

Withdrawals on a regular standing order basis are NOT available on this account for any purpose.

Account Conditions

A Young Savers account holder must be under 18 years old and at all times remains the sole owner of all the money in the account. The purpose of the Young Savers account is to encourage the savings habit and financial responsibility at an early age.

The child remains the account holder; however young savers under the age of 7 years must have their account operated by a parent or guardian.

At the age of 7 a young saver can operate the account providing a change of signatory is signed by the previous operator to transfer the account.

An R85 form may be completed and signed by the parent in order that the interest may be paid to the account on a gross basis. In completing and signing an R85 form parents are reminded that this is a declaration to the Inland Revenue and it confirms that the owner of the invested money is the child. The R85 form states that any interest amounting to £100 or more will be treated as the income of the parent and must be declared on their Inland Revenue return.

The Society makes an annual report to the Inland Revenue on this basis and therefore anyone completing this form must be completely aware of their responsibilities in connection to the Inland Revenue. The Society has a legal obligation to report instances where it becomes aware that funds held in the account do not belong to the child.

At the age of 16 the account must be transferred to the sole name of the Young Saver and a new R85 form completed by the child in order to continue to receive gross interest. If this is not done and the account remains operated by an adult, the interest will be taxed and you may need to reclaim this from the Inland Revenue.

Once age 18 is reached the Young Savers account can be transferred to an alternative account as the Young Savers account cannot continue to be held beyond age 18. If the young saver is remaining in full time education the account can be transferred to the Society’s Student Saver account.

Charitable Assignment Scheme

All new savers opening share accounts must sign a declaration agreeing to assign any future windfall rights to the Charities Aid Foundation. For more information please telephone us on Freephone 0800 834312.

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