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Children's Savings

This account is no longer available to new customers.

Current interest rates

Rates effective from 

Balance

Gross rate per year %

AER %

1 October 2019

£1+

2.00

2.02

£10,000+

0.30

0.30

Interest rates on the Children’s Savings account are banded. This means you’ll earn 2% interest on the first £10,000 of your balance, and 0.3% on the additional balance over £10,000.

Previous interest rates

Rates effective from

Balance

Gross rate per year %

AER %

3 September 2018 – 30 September 2019

£1+

0.60

0.60

£1,000+

1.10

1.10

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 Savings account are banded. This means you’ll earn 2% interest on the first £10,000 of your balance, and 0.3% on the 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 Savings Account 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 Services Compensation Scheme, and your cancellation rights.