Children's Bond
|
5.25% Fixed Rate Children's Bond fixed until 15 May 2012 - Issue 1 |
|
Min amount to open account
(annual interest) |
Investment Amount
(annual interest) |
Gross (%) |
AER (%) |
Net (%) |
|
£100 |
£100 plus |
5.25 |
5.25 |
4.20 |
|
Apply Now - Children's Bond |
|
|
|
Rates effective from 22nd January 2007
Features
- The Children's bond is a limited issue, and we expect high demand.
- One lump sum investment that provides guaranteed return on your investment at maturity.
- Minimum investment only £100.
- You are able to make additional investments into the account up to the overall limit of £100,000 but only whilst this issue remains open.
- Gross interest available to eligible non-taxpayers.
- For young savers under 7, the Bond must be opened by one or more adults known as trustees.
- This is an ideal account for children who were born before September 2002 and do not qualify for a Child Trust Fund.
- Instant withdrawals subject to 90 day interest penalty - If insufficient interest has accrued to cover the loss, adjustment made to capital balance.
- Interest is calculated on a daily basis and will be credited annually at midnight (commencing 1st May 2007) and up until midnight on the 15 May 2012. This interest will be added to your bond.
Age restriction:
- The bond is open to young savers between 2 and 16
Withdrawals:
- Available at any time throughout the term, subject to a 90 day gross interest charge on the amount withdrawn. If insufficient interest has accrued to cover the loss, an adjustment will be made to the capital balance.
- Local Branch withdrawals up to £500 in cash or cheques up to maximum balance if account held with branch.
Maturity:
- The bond will mature on 16th May 2012, interest having been calculated up until midnight on the previous day.
- We will contact you prior to that date to offer alternative investment opportunities. You are guaranteed a return of your investment on maturity together with any interest accrued.
Interest:
- Interest is calculated on a daily basis and will be credited annually at midnight (commencing 1st May 2007) and up until midnight on 15th May 2012. This interest will be added to your bond.
Tax:
- Interest will be paid or credited after deduction of income tax at the appropriate rate
- Non-taxpayers must first complete the appropriate HM Revenue & Customs declaration (R85) (Please contact your local Tax Office if you are unsure about your eligibility for tax-free interest)
How do I open a Children's Bond?
Net rates assume the lower rate of income tax of 20%. These figures are rounded and are for illustrative purposes only.
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if the interest was paid and compounded each year.
GROSS: The gross contractual rate of interest applicable to all accounts. Interest will be paid gross to non-taxpayers subject to the required HM Revenue & Customs certification (R85).