Dudley Building Society launches account with 3.5% interest on savings for children
IN AN effort to appeal to young people, Dudley Building Society has announced the launch of a new savings account for children.
Martin Lewis advises against children's savings in Premium Bonds
The building society's Junior Easy Saver has an annual variable interest of 3.5 percent and enables account holders to put away up to £150 per month.
This specific interest rate is variable and the building society is allowed to make changes at any given time.
In a hypothetical scenario, Dudley Building Society outlined what an account holder’s balance would be under this interest rate.
The bank stated: “If you were to open this account with the maximum opening balance of £150 and made the maximum investment of £150 on the 1st of each month, the total amount deposited over the 12 month period would be £1,800 earning you £34.05 interest. This would result in a total balance of £1,834.05."
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However, the building society noted that this forecast was based on a 12 month investment and does not reflect a customer’s specific circumstances.
Anyone between the ages of zero to 16 years of age, who are existing or new costumes of Dudley, are eligible for an account.
The Junior Easy Saver requires a responsible operator if the account holder is younger than 11 years old.
Furthermore, if an individual already has other Junior Easy Saver accounts with the building society, they are not eligible to open another account.
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Any queries or issues regarding the account can be dealt with by visiting one of Dudley’s branches across the country.
Queries about opening an account can also be dealt with over the phone or by email.
If instructions need to be given to the bank by the account holder, these are required to be delivered in person or in writing.
Junior Easy Saver accounts can be opened or closed at any Dudley branch, or through the post.
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Certified or original identification, such as a passport or driving license, must be presented to the building society to open an account.
In order for customers to access the account, they must have a minimum opening and operating balance of at least £10.
Conversely, the maximum operating balance for the bank’s Junior Easy Saver account is £1,800.
The maximum investment a Dudley customer can make into the account is upwards of £150 per month.
No withdrawals are allowed from this savings account during the term of this product, which is one year, unless the Junior Easy Saver account is closed.
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All potential and future withdrawals must be made for the benefit of the account holder and not its operator.
Dudley is allowed to ask costumes to provide additional and further information on any transaction relating to the account, in order to ensure the account holder is not being taken advantage of.
Upon the account’s one-year anniversary, customers will be automatically reinvested into a Junior Easy Saver Instant Access 2 account.
The building society will write to account holders around this time, outlining potential product offerings of note.
If account holders turn 16 during the 12-month period of the Junior Easy Saver, funds will automatically be moved into an adult Easy Saver Instant Access 2 account.
