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Current interest rates

Rates effective from

Balance

Gross rate per year %

AER %

28 July 2020

£1+

1.50

1.51

£10,000+

0.01

0.01

Interest rates on the Children’s Instant Saver - Issue 1 are banded. This means you’ll earn 1.50% interest on the first £10,000 of your balance, and 0.01% on your additional balance over £10,000

Previous interest rates

Rates effective from

Balance

Gross rate per year %

AER %

1 October 2019 – 27 July 2020

£1+

2.00

2.02

£10,000+

0.30

0.30

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.

Interest rates on the Children’s Instant Saver - Issue 1 are banded. This means you’ll earn the higher rate of interest on the first £10,000 of your balance, and the lower rate on your additional balance over £10,000.

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 [PDF, 147KB]. 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.