31 May 2019

Changes to interest rates on children’s savings accounts

  • We're reducing interest rates on some of our children’s savings accounts by up to 0.50% from 1 June 2019.

  • Children’s savings accounts make up just 5% of our savings balances but generally have higher interest rates than other accounts.

  • The rates we are able to offer our savers are influenced by mortgage rates. The mortgage market remains highly competitive, and so the decision to reduce these rates has been taken to balance the needs of borrowers and savers.

From 1 June 2019, we're reducing interest on some of our children’s savings accounts to ensure long-term value to our members by balancing the needs of both borrowers and savers.

The new rates of interest will be:


  • Future Saver (for members with a main current account) 3.00% AER/gross p.a. (variable)
  • Future Saver (for all other customers) 2.00% AER/gross p.a. (variable)
  • Smart Junior ISA 3.00% AER/tax-free (variable)
  • Child Trust Fund 3.00% AER/tax-free (variable)
  • Smart Limited Access 2.00% AER/gross p.a. (variable)

Members who have already opened a Future Saver or FlexOne Regular Saver will continue to benefit from the interest rates that were in place before 1 June 2019.

Despite the change, the new rates of interest remain highly competitive.

The Future Saver account for parents who have a main current account with us continues to offer the highest enduring non-ISA rate on the market for those looking to start saving for their children.

As a mutual, we need to be able to compete effectively in both the savings and mortgage markets. We aim to ensure our savings rates pay above the market average and we remain committed to offering a varied and fair product range that offers value to all members.

We always encourage our savers to review their accounts to ensure they are getting the best deal for them. We are committed to being open and transparent about rate-changes and allowing customers to move between accounts.

Jargon explained

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
Gross p.a. is the interest rate without tax deducted.
Tax-free is the contractual rate of interest payable where interest is exempt from income tax.
The tax information provided is based on our understanding of current law and HM Revenue & Customs practice, both of which may change.

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