Young Saver account

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At a glance

  • 3.00% gross/AER variable on balances from £1 - £20,000.
  • 0.50% gross/AER variable on balances over £20,000.
  • You’re in control of the account until they turn 16.
  • Carry on saving – when they turn 16, the account converts into an Easy Saver with bonus, currently paying 0.50% gross/AER variable.

About the Young Saver account

Children don’t usually need lessons in how to spend money, but with a Young Saver account they can learn how to save it too.

An adult – someone aged over 18 – needs to open the account and manage it on behalf of the child.

Parents, grandparents and other relatives can help them save by setting up standing orders to pay into the account.

To open a Young Saver account you need to have a Lloyds Bank current account.

Young Saver rates

  Variable Interest paid quarterly  
Balance AER % AER means Annual Equivalent Rate. AER illustrates what your interest rate would be if interest was paid and compounded each year and allows you to easily compare different offers.  
Gross % Gross rate means that credit interest is paid without income tax being deducted. You can receive your interest paid gross if you are a non-tax payer and have completed an Inland Revenue R85 form. 
Net %Net rate is the rate of interest the account pays after lower rate tax has been deducted. If you are a non-taxpayer, you can reclaim the tax by completing an HMRC R85 form. As the rate of tax may vary, the net rate is given for illustration only and is rounded to two decimal places.  
£0 - £20,000 3.00 2.97 2.38
Anything over £20,000 0.50 0.50 0.40

These interest rates are correct as at 15/08/2011.

How the Young Saver account works

  • The account must be opened and managed by an adult – someone aged 18 or over – on behalf of the child
  • Interest on the account is paid quarterly
  • You can withdraw money from the account whenever you like without losing interest
  • The child may be able to receive their interest free of tax. To apply, download the R85 form from the HMRC website
  • There’s a limit of £100 gross interest or income that gifts from a parent, or civil partner of a parent, can earn each year. This is to stop parents from using their children’s account to earn interest on their money
  • This limit doesn’t apply if the gift comes from anyone else. For more details, visit the HMRC website
  • Before the child's 16th birthday we'll write to you reminding you that the account will convert into an Easy Saver with bonus solely in the child's name. If you’d prefer the money to be paid into a different account either for your child to manage themselves or for you to manage on their behalf we'll let you know how to do this

Good to know

  • Make easy transfers into the Young Saver Account from a non-Lloyds Bank account. Just fill in a savings transfer form and take it to your nearest branch. Download the savings transfers form
  • Boost their savings by registering for Save the Change™. Every time you use your Lloyds Bank debit card we’ll round up the amount to the nearest pound and transfer the difference into their Young Saver Account. Register for Save the Change
  • Let the family help their savings grow – parents, grandparents or other family members can set up a standing order to pay into the account

Account name Young Saver
Interest rates (AERs) Variable interest

Interest paid quarterly

Young Saver Account interest rates.
Tax status
Interest is paid net of basic income tax

If your non savings income is less than your personal allowance you may qualify for the 10% savings tax rate, we will still pay your interest net of tax (with income tax taken off - currently 20%). If you think that this may apply to you, you should complete HMRC form R40, available on HMRC website or your tax office.
Conditions for bonus payments Not applicable
Withdrawal arrangements No notice payments

Instant access with no loss of interest
Access In branch

 

If your child is a UK resident non tax payer you can register your account(s) to receive credit interest paid gross in branch or by completing an HMRC R85 form. If you are completing the R85 form you will need to complete one form for each account you hold. You can download the R85 form at www.hmrc.gov.uk.

Apply in a branch

Help your children learn how to save. Make an appointment at your local Lloyds Bank branch and we’ll open the Young Saver account for you. You’ll need to bring:


YOUNG SAVER ACCOUNT AND HOW TO OPEN IT

What terms make up the Young Saver agreement? The agreement is made up of these terms and those set out in the:
Personal Banking Terms and Conditions; and the Banking Charges Guide.
If there’s any conflict between any of the terms below and those referred to above, the terms below will apply.
What is a Young Saver Account? It’s an account for children’s savings which pays a variable rate of interest.
Who is this agreement with? This agreement is between us and the adult who opens and runs the account on behalf of the child.
Who does the money belong to and who runs the account? The money belongs to the child, and the account is in the child’s name. An adult will open, run, and close the account on the child’s behalf. The adult must manage the account in the best interests of the child.
Who can open a Young Saver Account on behalf of a child? The adult must be aged 18 or over, and must have a Lloyds Bank personal current account.
How young does a child have to be for a Young Saver Account to be opened? Under 16.
Where can a Young Saver Account be opened? In any Lloyds Bank branch.
How many Young Saver Accounts can a child have? One. This means it will not be possible, for example, for a parent and a grandparent to help the same child save separately in different Young Saver accounts. An adult can open and manage Young Saver Accounts for more than one child.


MANAGING A YOUNG SAVER ACCOUNT

How is money paid into the account? Anyone can make payments into the account, and this can be done in a branch, by online banking, mobile banking, telephone banking and standing order.
How is money withdrawn from the account? We may check that any withdrawals from the Account are made on behalf of the child.
How is the account otherwise managed – e.g. changing personal details, addresses etc? The adult will need to go into a Lloyds Bank branch.


INTEREST

How is interest paid? We’ll pay interest and add it to any balance in the account once each quarter - on the 10th of March, June, September and December.
How do I know what the interest rate is? You can find out by either asking in branch or by looking online.
Is tax taken off the interest that is paid on the account? Yes – we pay interest less basic rate income tax.  But if the child’s parent or guardian fills out and sends us a Her Majesty’s Revenue and Customs Form R85, then we will pay gross interest.
What is a variable interest rate? The account pays a variable rate of interest – this means that we can change the rate of interest we pay on the money held in the account.  For further details about how we do this, and how we notify changes, please read the Personal Banking Terms and Conditions.


CHANGES TO THE ACCOUNT

What happens when the child turns 16? Before the child turns 16, we’ll write to the adult, and explain the choices that can be made about what to do with the money in the Young Saver Account when the child turns 16.  

If we don’t hear from the adult, we’ll put any money in the account into a Lloyds Bank instant access account in the child’s name when they become 16.  The child will have complete control of that account and the money in it.


CLOSING A YOUNG SAVER ACCOUNT

Can the account be closed?
Yes – the adult can close the account at any time.  Just come into a Lloyds Bank branch and let us know.  We’ll pay any interest earned up to the date of closure and either help the adult to move any balance to another account we offer or return any balance to the adult to deal with on behalf of the child.

Easy Saver terms and conditions

Our agreement with you is made up of general conditions (contained in the Personal Banking terms and conditions leaflet) and additional conditions. These include the conditions below and the Banking Charges guide. If there is any overlap or conflict between the additional conditions and the Personal Banking terms and conditions, the additional conditions apply.

The Easy Saver Account is an instant access savings account with a variable interest rate.

1     ELIGIBILITY
1.1  To have the Account you must be 16 or over.

2     DEPOSITS AND WITHDRAWALS
2.1  You can pay money into the Account in branch, or by transferring money from
another account with us or another bank.
2.2.  You can make withdrawals from this Account at any of our branches but you can only make payments from the Account to another Lloyds Bank current or savings account in your name (or in the case of a joint account, in any of your names). You cannot set up standing orders on the Account to make these payments.
2.3  You can ask us for a Cashpoint® card to make deposits to and withdrawals from the Account.

3     INTEREST
3.1  The Account interest rate is variable.
3.2  We will pay interest once a year on the anniversary of opening the Account.
3.3  You can ask us to pay interest into a different account with us.
3.4  You will find our current interest rates for the account in our UK branches, online at www.lloydsbank.com or by phoning us on 0845 300 0032.

4     COOLING OFF
4.1  If you are not happy with your choice of account or service, you can cancel it within 30 days of opening the account or taking the service. We will then help you to move to another account we offer or will return your money to you with any interest you have earned.

Important documents

You can download and read these important documents:

Personal banking terms and conditions leaflet

Banking Charges guide

Glossary

AER

AER stands for Annual Equivalent Rate. It illustrates what your interest rate would be if interest was paid and compounded each year and allows you to easily compare different savings accounts.

Net rate

Net rate is the rate of interest payable after allowing for the deduction of income tax at the rate specified by law (currently 20%).

Gross rate

Gross rate is the contractual rate of interest payable before the deduction of income tax at the rate specified by law (currently 20%).

Tax free rate

Tax-free is the contractual rate of interest payable where interest is exempt from income tax.

Ways to apply

Existing customers

To open a Young Saver account, please make an appointment at your local branch. You’ll need to bring your child’s birth certificate or passport with you, as well as proof of your own identity.

New customers

To open a Young Saver Account, you need to have a current account with Lloyds Bank. We’ve made switching to Lloyds Bank easy.

Ask a question

For answers to common queries please use our help centre.

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