The Treasure bond allows you to put money away in an account that is designed to grow with your child. The bond automatically 'rolls over' into a new issue each year so you don't need to re-apply.
A Treasure Bond can be opened for a child up to and including the age of 12, either in trust on behalf of the child or in the child's sole name if aged 8 or over. The trustee and the child must be resident in the UK.
At the start of each month we will set the interest rate that will apply throughout the term to all Bonds opened during that month. Regardless of what happens to interest rates, a Bond can be opened at this rate until the last working day of the month. A new rate of interest will be set at the start of the following month for that month's issue of the Bond. Of course, interest rates available in previous or subsequent months could be higher or lower than when your Bond is opened due to changing economic conditions. Interest will be added to your account on maturity each year.
You can save as little as £100 or as much as £500,000.
A new issue of the Bond is introduced each month and there is no limit to the number of Bonds that can be held. When you open the Bond, we will give you a receipt for the amount that has been invested and a folder to keep all the paperwork together. After the end of the month in which the Bond is opened, we will also send you a certificate to confirm the amount invested and the interest rate.
At the end of the term your balance will be transferred to a new issue of the Bond. During this month, you will be able to add to the Bond and have instant access to your money without loss of interest.
In the first week after maturity you will be sent a new certificate showing the amount of interest earned, the balance carried forward to the new issue of the bond and the rate of interest applying to this new issue.
At this point, if you want to keep saving for your child in the Bond, simply do nothing. The money invested will remain in the new issue of the Bond for a further year after the end of the instant access month. You can leave the Bond to roll over into further years until the child becomes 21.
During the month following maturity of the Bond, you will be able to access the money invested without loss of interest. This will be the only month in which partial withdrawals can be made. However, you can close the Bond after it has been opened or rolled-over for at least 3 months but 90 days interest will be deducted if you choose to do this. (If the Bond has rolled over into a new issue, the 3 months begins at the end of the instant access month).
| Account Name | Treasure bond |
|---|---|
| Interest rates (AERs) | One year fixed rate paid annually or monthly,view interest rate |
| Tax Status |
or
|
| Conditions for bonus payment | N/A |
| Withdrawal arrangements | Unlimited withdrawals and closure permitted during Rollover month without loss of interest. No withdrawals permitted during the fixed term. Early closure during each fixed term is only permitted after 3 months, with 90 days loss of interest on the closing balance. Subject to daily withdrawal limits |
| Access | Branch or Agency |
Whether you can benefit from gross, net or tax free interest is dependent on your own personal circumstances and tax status and so may be subject to change in the future.
Effective 1 March 2010
|
Balance £ |
Interest Type |
Gross Rate P.A. % |
Net Rate |
AER % |
|---|---|---|---|---|
|
£100 and above |
Annual interest |
2.00% |
1.60% |
2.00% |
NB. AER quoted assumes that the investment is made on the final day of the month.
AER stands for Annual Equivalent Rate and shows you what the interest rate would be if interest was paid and added each year. This will enable you to compare more easily the return you can expect from your savings over time.
Net: Interest on investments and savings amounts is payable net of income tax, which means after the deduction of income tax at the lower rate of 20%, or subject to the required registration gross.
This savings account can be operated in various ways but must be opened at a branch or via the post.
Note: When applying for a YBS account you will need to verify your identity and address. Check our Verifying your Identity section for more details of what you may need to take with you.
Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, loans, mortgages and more.
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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).