We understand the importance of saving and believe the earlier each person starts to save – the better. Encouraging children to save can add to their understanding of money and create good habits early on.
Summary box for the Junior Account
|What is the dividend rate?
||The dividend rate is agreed at the Annual General Meeting (AGM) following the end of each financial year (30th September). The dividend is calculated daily, and paid once a year, the following working day after the AGM.
Dividend payments are not guaranteed. Past years dividend rates can be found here.
|How do I open and manage the account?
||A Junior Account can be opened online or by completing a paper-based application form. To keep membership active there must be at least £5 in this account at all times, however there is no requirement to save regularly.
The Junior Account allows members to save up to a maximum of £10,000 in total. This amount can be saved through lump sums or regular deposits.
|Can I withdraw money?
||You can withdraw your money online, by post, or over the phone.
Withdrawal(s) and closure are available without notice, however this will affect your dividend payment.
||Dividend is paid gross, but is not tax free and therefore should be declared on a tax return if necessary.
The Personal Savings Allowance (PSA) means every basic-rate taxpayer can earn £1,000 interest without paying tax on it. Higher-rate taxpayers can earn £500 with no tax. Additional-rate taxpayers do not get an allowance and therefore must pay tax.
How it works
Our Junior Account allows a parent, guardian or grandparent to open an account and save up to £10,000 to go towards their child or grandchild’s future. The money can be deposited in regular monthly amounts or lump sum deposits as and when you wish. The monthly savings feature of an adult account does not apply to junior accounts.
This account is open to any child or grandchild, up to age 18, who lives with one of our members who are part of the Police family. Every junior receives a £5 gift into their account upon it opening, and each year they are entitled to receive a dividend on their savings at the same rate that adult members receive! We encourage members to sign up their children whilst they live at home – because it is only when they live with a member of the Police family that they are eligible to join. However once they are members, they are free to move out and continue a lifetime membership with us, and enjoy all of the benefits of being a member.
Life Protection equivalent to double the value of your savings up to a maximum of £40,000 per member and loans are protected up to a maximum borrowing of £40,000 per member, this means that your loan would be cleared, ensuring that your debt does not remain outstanding, subject to terms and conditions.
All benefits are paid at the discretion of our Board of Directors. Life Protection is not an insurance policy and is not guaranteed. Life Protection is applicable to members up to age 65. More information and terms and conditions can be found here.
When a junior turns 18
We pride ourselves on having flexible products that suit our members and the Junior Account is no exception. Each Junior Account is set up under the control of the member who opens it, usually the parent or grandparent. However, providing the child is aged 8 or over, the control can be passed over to the child.
Junior Accounts can be converted to adult status once the junior reaches 18, following receipt of photographic ID. When junior’s convert to adult member status; the maximum savings amount increases to £40,000, they are able to borrow from us, have additional savings accounts and can also join our monthly lottery!
Control of account
The account is opened by the member on behalf of the junior saver and the account will be in their name. Control of the account can be passed to the junior any time from the age of eight upwards and they may change their account to adult status from age 16 should they wish to do so.
An adult status means that they are a full member and are entitled to all our other products and services; however our lending services are not available until the age of 18. If control of the account is not passed over prior to the junior turning 18 we will contact the adult member before full control of the account is passed over to the junior.
As a member, you will receive a dividend payment once a year, allowing your money to make money. The amount of dividend that you will receive depends on the success of our Credit Union in that financial year. The dividend rate is decided during our Annual General Meeting, which usually takes place in December. Your dividend is paid into your Junior Account for you to either save or withdraw.
Terms and Conditions
- You must be a child or grandchild of a **qualifying member.
- Junior accounts do not require regular monthly savings.
- You can pay into a junior account via cheque, Payroll Deduction, Direct Debit or debit card.
- A junior can hold a maximum of £10,000 until they reach the age of 18.
- The junior member must always have at least £5 in their account at all times.
- The general terms and conditions of membership with the Credit Union can be found here.
**A qualifying member is someone who qualifies to be a member of our Credit Union as they fit our common bond e.g. who is employed by or works for the Police family.
No1 CopperPot Credit Union is covered by the Financial Services Compensation Scheme. This means that your deposits placed within the Credit Union are protected by the scheme up to £85,000 per member. This scheme was set up to provide a safety net should a bank, building society, or credit union become insolvent. If you would like to find out more information about the Financial Services Compensation Scheme please visit their website at www.fscs.org.uk or visit our FSCS information page.