One way to help support your children through these experiences is to open a children’s savings account. Money can be deposited throughout their childhood by parents or grandparents, even by the child themselves as a way of introducing them to savings.
If you choose to open an account with The Cumberland, you’ll have the full range of ways to manage the account and introduce your children to banking. You’ll be able to visit us in-branch at one of our many locations throughout our operating area. Our customer service team are available on 01228 403141 for telephone enquiries. If you already hold an internet enabled current account with us then our Young Savers Accounts can also be managed via your internet banking.
The Cumberland offer a Young Savers Account which has a variable interest rate and requires a £1 minimum balance to remain open. This is an instant access children’s account which allows daily cash withdrawals. Due to it’s ease of access, this account is a good way to introduce a child to the world of savings, earning interest on their money but allowing withdrawals as and when required.
We currently offer a Young Cumberland Blues account which is a variation of the above for supporters of Carlisle United. The football club benefit from an annual donation from The Cumberland equivalent to 1% of the total average balance of all Cumberland Blues savings accounts during the year. This account has slightly different terms and conditions, for example withdrawals are limited to 6 instant access penalty free withdrawals per calendar year.
For longer term saving we offer a Cash Junior ISA which presents a way to save for the future. This type of account also has a variable interest rate but doesn’t allow withdrawals. On the account holder’s 18th birthday, the account is transferred to a cash ISA with instant access and the holder will then be able to make withdrawals. This type of account is a good way to save for longer term goals such as a deposit for a house, or university fees as there is no temptation to withdraw funds.
Children’s Savings Accounts, excluding Cash Junior ISAs*, are not tax free.
If a parent gifts money to a child’s savings account, and it produces more than £100 gross interest in a tax year, the income may be taxable depending on the parent’s personal circumstances.
On the rare event of a child having sufficient income, they could be eligible to pay tax on their savings. We advise that you obtain specialist tax advice if you are unsure about your child’s tax status.
Our Young Savers Account can be opened for customers up to the age of 16 who live in our operating area, however for young savers under 7, it will be opened in trust and must be operated by a responsible adult such as a parent, grandparent or guardian.
Our Cash Junior ISA is available to customers under the age of 18 who live in our operating area and do not hold a Child Trust Fund. Only parents, or guardians with parental responsibility can open the account on behalf of the child.
Our Young Savers Account allows instant access for withdrawals of up to £500 each day in cash,
Our Cash Junior ISA doesn’t allow withdrawals until age 18 (unless under exceptional circumstances).
The above accounts can be opened via appointment in-branch or by telephone. Click here to book a branch/telephone appointment with us.
A more detailed explanation of our children’s savings accounts can be found here.
*For Cash Junior ISAs, under current HM Revenue rules, an account holder may subscribe a maximum of £9000 in this tax year. This allowance starts again in each new tax year.