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Current interest rates

The interest rate on our Children's Instant Saver - Issue 1 will never fall below 1.50% gross per year (1.51% AER).

Rates effective from:

Balance

Gross rate per year %

AER %

1 December 2017 - present

£1+

1.75

1.76

Previous interest rates

Rates effective from:

Balance

Gross rate per year %

AER %

19 November 2012 - 30 November 2017

£1+

1.50

1.51

Further information

Mortgage offset:

No

Interest rate:

Rates are variable. Interest is calculated daily using your statement balance and is paid on the first working day of each month.

Gross:

The rate of interest payable without tax taken off.

Tax:

Interest is paid gross. Children are entitled to income tax allowances and the Personal Savings Allowance (PSA) in the same way as adults. If a child is liable to pay tax, any tax due on interest earned will need to be paid to the appropriate tax authority.
For further information & guidance, please refer to HMRC’s website
Please note that if a parent gifts money to a child that produces more than £100 gross interest in a tax year, the income is normally taxed as belonging to the adult.

AER:

Annual Equivalent Rate. This illustrates what the interest rate would be if interest was paid and compounded once each year.

For additional information, download our Children’s Instant Saver- Issue 1 terms and conditions. They are in addition to the general conditions of your Customer Agreement with us.

Read important information about our interest rates, the Financial Service Compensation Scheme and your cancellations rights.