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Personal banking > Savings > Young Saver 
 

Young Savers account

Children need no lessons in how to spend money, but with a Young Savers account they can learn how to save it too.

You can open an account for your child then manage it for them until they turn 16. A great gift for the youngster in your life.

Features & Benefits

  • A variable interest rate of 0.50% AER, which can be paid tax-free. View Young Savers account interest rates.
  • Interest paid quarterly.
  • Instant access to the account through branches.
  • Statements at least once a year to keep track of savings.
  • Set up regular payments into the account from any designated current account to help grow their savings.
  • When your child turns 16 the account is theirs to manage.

How the account works.

How do I apply?

 At your local branch
Visit your local branch with proof of identity for both you and the child, and we'll open the child’s account.

What proof of Identity can I use?
In addition to your own identification, the child’s birth certificate or passport is also required to open the account.

Young Savers account important information.

View Young Savers Summary box.

Alternatively, If your child was born after the 1st September 2002 and you receive Child Benefit for them, you can open a tax free Child Trust Fund account.

Young Savers rates

Young Savers Account

Amount InvestedInterest Paid Quarterly
AER %Gross %Net %
£1+0.500.500.40
 
These interest rates are correct as at 01/04/2009.


Interest rates are variable. View previous rates.

Explanation of terms

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.

Net rate is the rate payable after the deduction of lower rate tax (which may be reclaimed by non-taxpayers on completion of an Inland Revenue R85 form). As the rate of tax may vary, the net rate is given for illustration only and is rounded to two decimal places.

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.

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How the account works

  • You manage the account for your child up to the age of 11.
  • At age 11, you and your child can apply for a Under 19s Current Account to further learn about managing money.
  • At the age of 16 the account converts into an Easy Saver account and is theirs to manage how they wish.
  • You can help your child even more by registering the account for Save the Change® and putting away your pennies from your everyday debit card transactions when we round them up to the nearest pound.
  • Parents, grandparents or other family members can set up a standing order - saving regularly is the easy way to grow your savings.
  • Transfer money from a non Lloyds TSB account with our savings transfers form, simply complete and take into your nearest  branch.
  • Watch your child enjoy seeing those pennies grow. Register your child’s account to get interest paid on it tax-free, giving your child even more incentive to save.

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How do I apply?

 At your local branch
Visit your local branch with proof of identity for both you and the child, and we'll open the child’s account.

What proof of Identity can I use?
In addition to your own identification, the child’s birth certificate or passport is also required to open the account.

Young Savers account important information.

View Young Savers Summary box.

Alternatively, If your child was born after the 1st September 2002 and you receive Child Benefit for them, you can open a tax free Child Trust Fund account.

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. As every advertisement for a savings product, which quotes an interest rate, will contain an AER you will be able to compare more easily what return you can expect from your savings over time. Gross rate is the contractual rate of interest payable before the deduction of income tax at the rate specified by law.