Children's Loyalty Bond - all you need to know

Overview

What people sometimes forget is that many children and young people can receive their interest gross. That means your Children’s Loyalty Bond could be paying more interest than an account where the interest is taxed - a bonus you can’t ignore. Furthermore, parents or relatives who open a Children’s Loyalty Bond for a child may also be entitled to tax benefits. We suggest you talk to a Financial Adviser about this so to talk to one of ours by arranging an interview or calling 0845 300 2511.

Manage your money on-line

With this account you have the ease and convenience of being able to check and manage your money on-line and have access to your cash 24 hours a day, 365 days a year.

A higher rate of interest

For the first five years the bondholder will receive a fixed rate of interest that is higher than the standard rate of interest on our Five Year Fixed Rate Bond. Interest is paid annually on 1 January.

Access to your money whenever you want

Up to £2,808 per annum can be invested from the Children’s Loyalty Bond into a Norwich Union Stakeholder Pension established through the Society without any loss of interest. Although withdrawals can be made from the Children’s Loyalty Bond before it matures, it will mean losing a sum equivalent to 180 days' interest on the amount withdrawn.

Other information

The minimum investment and balance is £500; the maximum is £25,000

Only one investment is allowed into a Children's Loyalty Bond. Only one Children's Loyalty Bond can be opened per customer. A parent or guardian can open a Children's Loyalty Bond on a trustee basis as well as opening a Fixed Rate Loyalty Bond for themselves.

Towards the end of the term of the bond, we will contact you to discuss the options available to you when it matures. Unless you advise us otherwise, we will transfer the capital and interest from your bond on maturity to an easy access Elite Interest account.