Our Ladybird account (issue 7) is designed to help children get saving.
Interest rates are tiered based on the account balance so, the more you save the more you earn! The information below provides an overview of the account and the product specific terms and conditions.
Perfect if you...
- Want to start saving from a young age
- Want to earn more interest the more you save
- Want to withdraw your funds as and when you need to
- You will need a minimum deposit of £1 to open the account
- You must be a UK resident aged 12 or under
- You must have a Parent or Legal Guardian's approval to process the child's data
Ladybird account (issue 7)
Interest rates on this account are tiered based on account balance, and are paid as below:
Current rates valid from 19 August 2020.
Interest is calculated daily and paid gross; without the deduction of tax, into your account annually on 31 December.
If your account falls below the minimum balance for your account type your rate will decrease to a variable rate of 0.05% Gross p.a./AER.
The interest rate for this account is variable and can be changed in accordance with clauses 7.6 – 7.10 (inclusive) of the Savings Terms & Conditions.
The following projection is provided as an example only and doesn't take into account your individual circumstances. It assumes no withdrawals or further deposits beyond the opening deposit.
|Opening balance||Gross p.a./AER*||Balance after 12 months|
To be eligible to open this account you must:
- Be a UK resident aged 12 or under with a minimum deposit of £1. The maximum balance of this account is £10,000
- Only hold one of these accounts at a time per child
- Open the account in the sole name of the child with an adult/s as a signatory
- Have Parent/Legal Guardian approval to process the child’s data on the Children’s Application Form
- Open in branch or by post
Please Note: Before we can open your account, we will confirm your identity using electronic searches and paper based evidence. Please refer to our Identifying You and Preventing Fraud leaflet.
To manage your account:
- The signatory can manage this account in branch or by post
You can withdraw cleared funds from this account at any time by presenting your membership document and signing a withdrawal slip.
Cash withdrawals are allowed up to a maximum limit of £1,000 per day. Cheque withdrawals are allowed up to the maximum balance of your account and must be made payable to the child. Money cannot be withdrawn by electronic transfer.
On your 13th Birthday, the account will move into the current version of our Smart Saver account unless you instruct us otherwise.
If you decide this account isn’t right for you, you can close your account. Cleared funds will be returned to you with the inclusion of any interest earned.
You may need to pay tax on any interest that exceeds your Personal Savings Allowance. For more information, please contact HMRC or visit www.hmrc.gov.uk.
Our full Savings Terms & Conditions will be provided to you before opening this account; you can ask us for a copy at any time.
* The gross rate is the rate before deducting tax at the rate applicable to savings income. The annual equivalent rate (AER) is a notional rate which illustrates what the gross interest rate would be if the interest was paid and added to the account annually.
Account Specific Rules and Criteria – Effective from 19 August 2020
Where the Savings Terms & Conditions are inconsistent with the account specific rules and criteria, these account specific rules and criteria will apply and will take priority.
- All funds invested belong to the child.
- You need to tell HMRC if your child earns more than £100 in interest from money given by one parent, or more than £200 if given by 2 parents, this interest is liable for tax. Please contact HMRC for advice.