Our Junior Saver Account is designed to help anyone save money for a child until they reach the age of 18.
Whether you're a parent, grandparent or other relative, it's a great way to set aside some money and watch it grow while they grow. Then, when the time comes, they'll have that valuable financial support to give them a flying start in life- wherever they're heading.
You can also open a Junior Saver Account if you're aged between 7 and 18 and want to save for your own future, with a good return on your money.
5 great reasons to choose a Junior Savings Account from The Scottish
SUMMARY BOX – Key product information for Junior Saver Account
What is the interest rate?
£100 and over 1.75% Gross/AER variable After 2 years 2.00% Gross/AER variable.
After 5 years 2.25% Gross/AER variable.
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.
Interest is paid gross on 31 March each year. Interest is normally added to the account, but it can be paid to a bank account or another account with Scottish Building Society if you wish.
Can Scottish Building Society change the interest rate?
The interest rate is variable and may be changed as outlined in section 9 of the Savings Terms & Conditions. When the change is an increase in the interest rate, we will let you know by writing to you or by placing notices and leaflets in all our branches and updating our website. When the change is a reduction, we will write to you 14 days before the rate change and you will then have a period of 30 days during which you may close or switch your account without having to give notice or having to lose interest or pay additional charges.
What would be the estimated balance after 12 months based on a £1,000 deposit?
If you open a Junior Saver Account and deposit £1,000, after 12 months the projected balance would be £1,017.50.
This projection is for illustrative purposes only and does not take into account your individual circumstances.
How do I open and manage the account?
This account is available to children from birth to 18 years old, and can be opened in the name of the child or a trustee for the child (children over the age of 7 can open an account in their own name). You can open an account in branch or download an application form online. The minimum opening balance is £100, and you can add to the account whenever you like either in branch, by post or by bank transfer. The maximum account balance is £25,000.
The account matures at the end of the month in which the child’s 18th birthday falls. Thereafter, the account will automatically transfer into our Instant Access Saver Account, or an equivalent account available at that time.
Can I withdraw money?
No withdrawals can be made for the first six months of account opening. Thereafter, with 30 days’ notice, withdrawals can be made or the account closed without penalty. Without notice, withdrawals can still be made but with a penalty equivalent to 30 days’ interest on the amount withdrawn.
Where the account is operated in a child’s own name, they can give instructions regarding withdrawal and/or closure.
Interest is paid gross without tax deducted. A small proportion of savers may be required to pay tax on savings interest – this should be arranged directly with HMRC through your tax return.
Please read the Savings Terms & Conditions leaflet for general conditions which apply to this account.
Ready to apply?
Completed applications can be returned to any branch or agency office, along with proof of your identity and initial deposit.
Alternatively, you can post your application and necessary documentation to:
Scottish Building Society
193 Dalry Road
YOUR QUESTIONS ANSWERED
Who is eligible for the Junior Saver Account?
The Junior Saver Account is available for children from birth to 18 years, and can be opened in the name of a child or a trustee for a child. As a trustee, you must ensure that all the transactions on the account are for the benefit of the named child.
Children over the age of 7 can open an account in their own name to save for their own future.
Can I withdraw money before the account matures?
The main purpose of the account is to save money until the child is 18. But we realise that there may be reasons why some or all of the money might be needed before that date, so we have built in a certain amount of flexibility:
- With 30 days’ notice, withdrawals can be made or the account closed without penalty.
- Without notice, withdrawals can still be made, but with a penalty equivalent to 30 days’ interest on the amount withdrawn.
No withdrawals can be made until the account has been open for at least six months.
Where the account is operated in a child’s own name, they can give instructions regarding withdrawal and/ or closure. If the account is opened by an adult on the child’s behalf, the adult will have control over the operation of the account.
How is interest paid?
Gross interest is paid on 31 March each year. Interest is normally added to your account – but you may have it paid to a bank account or another account with the Society if you wish.
- Once your account has been open for two years, we will increase the rate by 0.25%.
- When it has been open for five years, the rate increases by a further 0.25%.