Interest Zone
An account designed to get children under the age of 18 into the savings habit with the added bonus of managing the account in your local branch. Please also read the Children's Account Opening Guide for further information about opening an account for a child. The account must be opened and operated as a minor's sole account.
Effective from 1st April 2009
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Account name | Interest Zone |
Interest rates (AERs) | The interest rate is variable. For details see the table above.
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Tax status | Interest is paid net of tax unless a form R85 is completed.
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Conditions for bonus payment | Not applicable.
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Withdrawal arrangements | This is an instant access account. Withdrawals are not permitted where the child is under the age of 7.
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Access | This account is branch based.
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Interest
- Interest is paid annually on 31st May.
How to apply
- Apply in person in any of our branches.
- The minimum balance is £1 and the maximum balance is £25,000.
Using your account
- Withdrawals are not permitted where the child is under the age of 7.
- Making a withdrawal, checking the balance - it's all just a matter of calling into any of our branches.
- And we'll provide a passbook as a record of the account.
Paying money in
- Cash or cheque - over the counter at a branch.
- Standing Order - arrange a standing order to pay a regular amount of money into the account.
- Post - just post us a cheque made payable to the account holder(s).
- Transfer - transfer money to this account from another Coventry account.
Withdrawals
- Once your child reaches seven years of age, they can produce a signature and are capable of operating the account, they can withdraw money by simply visiting their local branch. Withdrawals can be made by cash or cheque.
- All withdrawals must be for the benefit of the child.
Notes
1. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.
2. The minimum balance is also the minimum level at which the account should be operated. If the balance of an account falls below the minimum stated, and the Society has not exercised its right to close the account, the interest rate paid will be nominal. This nominal rate is our basic variable investment rate currently 0.10% AER/gross p.a., 0.08% net.
3. Interest is calculated gross, which means before tax has been deducted. Interest is usually paid net of tax (after tax has been deducted at the current rate of 20%). If you are taxed at the basic rate you should have nothing more to pay. If you are a higher rate tax payer you are likely to have to pay more tax.
Non-taxpayers can register to have their interest paid gross by completing a form R85 for each account and each account holder, (if both are entitled to have interest paid gross.) Tax may be reclaimed from HM Revenue & Customs where the amount deducted exceeds an investor's liability to tax. If you are in any doubt about your tax position please contact your local tax office.
4. Please refer to the Interest Zone account terms and conditions, the Interest Zone leaflet and Children's Account Opening Guide for full details. Details of any charges applicable to accounts are available on request from any branch, by telephone or on our website.
Coventry Building Society, Economic House, PO Box 9, High Street, Coventry CV1 5QN.
