Junior Account

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.

 

 

Key Product Information

What is the dividend rate and when is it paid? 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.

You must be the parent, grandparent or guardian of the child and you will be the controlling adult on the account until you agree to pass it over to the junior.

You can operate the account online, by post or over the phone.

How much can I save? A maximum of £10,000 in total, which can be saved through lump sums or regular deposits.
Can I withdraw money? Money can be withdrawn online, by post, or over the phone.

Withdrawal(s) and closure are available without notice; however, no dividend will be paid if the account is closed.

Important information Dividend is paid gross, but it 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

The account will be in the name of the child but controlled by the adult member. 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.

 

Terms and Conditions

  • You must be a child or grandchild or under the guardianship 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. This account can be opened by the member, controlling adult, on behalf of the junior saver. The account will be in the name of the child but controlled by the adult member. 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.

 

Deposit Protection

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.

 

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, grandparent or guardian. 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, but they must pay between £5 and £1000 per month in, they are able to borrow from us, have additional savings accounts and can also join our monthly lottery!

Life Protection

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.

Dividend

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.