Junior BarclayPlus

Mortgage offset:

No

Interest rate:

Rates are variable. Interest is calculated daily using the cleared balance and is paid quarterly on or around 13 March, 13 June, 13 September and 6 December each year.

Interest rates on the Junior BarclayPlus 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.