Ladybird account (Issue 4)

Savings Rates

Your eligible deposits with Saffron Building Society are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit protection scheme. Any deposits you hold above the £85,000 are not covered.

Please visit www.fscs.org.uk for more information

• How much can I deposit in this account?
• Open with just £1.
• Maximum deposit of £50,000.
• How can I add to this account?
• Deposit by cash, cheque or transfer from another bank or Society account.

• What are the withdrawal arrangements?
• Immediate access means you can use your savings whenever you like.
• When is the interest paid?
• Interest is paid annually on 31 December and credited directly to your account.
• How can I access this account?
• Access via one of our branches or by post.

• Is there anything else I should know?
• Children under the age of seven must get an adult to act as a nominee or trustee, which makes this account ideal for parents, grandparents, friends or relatives to open on behalf of a child.
• On your 12th birthday the account will roll over into a V4 account, unless you instruct us otherwise.
• The interest rate is tiered, so the more you save, the higher the rate of interest.
• Because children don't usually have to pay tax, we will normally be able to pay your interest gross. In order to do this you will need to complete an R85 form. Please ask a member of staff for details.
• If your account falls below the minimum deposit amount, you will earn a fixed rate of 0.05% gross p.a./AER* whilst the account is below the minimum balance.

• Right for you?
• You are under 11 years old.
• You want to start saving!

• Other features:
• Free Ladybird money box with every account opened.
• Easy and fun.

• Not what you're looking for?
• Over the age of 11?: Try our V4 account (Issue 3).
• For a longer term deposit, consider a Fixed Term Bond.

Guidance for Parents/Guardians

If you are a parent/guardian and give your child a gift of money that produces more than £100 gross interest per year then the income will normally be taxed as yours. Please see HM Revenue & Customs IR111 Booklet from your local Inland Revenue Office or visit their website for further information.

Mutuals and Membership of Saffron

What is a Mutual?

A Mutual exists with the purpose of raising funds from its customers (members), in order to provide services to all members of the organisation. It is owned by its members and run for their benefit - it has no external shareholders, and, as such, is not driven to make large profits. Profits that are made are usually re-invested in the mutual - to keep the organisation secure and to pass benefits back to members.

What is a member?

We define our 'members' as anyone who has held a minimum of £100 with the Society for 12 months or more. Members also include our mortgage customers with over £100 on loan. To be a full (voting) member, you also have to be over 18 years of age. Being a member gives you a number of rights within the Society.

Why are members important?

Building Societies (all Mutuals) were originally set up to meet the financial needs of savers and borrowers in their communities. This core principle still stands today. To this day, Building Societies such as Saffron take direction from and seek involvement of those that they serve.

Members are the most important people in our business model; every decision we make is taken with our members' interests in mind. We seek feedback from our members regularly and act on your views where ever we can.

What are my rights as a member?

You are entitled to attend and vote at our AGM on a number of issues (election of Directors, and appointment of auditors, for example). You can also speak at AGMs, nominate Directors, or stand for a position yourself.

Members are also entitled to receive particular pieces of information from the Society, including the Society's annual Summary Financial Statement which details our accounts each year.

The BSA (Building Societies Association) have produced a clear summary of members' rights.