Freedom is our savings account for 12 to 20 year olds. Although it's a savings account it comes with a cash card, allowing you to withdraw money whenever it's needed.
An account can be opened with just £10, which is also the minimum balance. Freedom is available to UK residents aged 12 to 20 (inclusive). This account cannot be opened in joint names, nor in trust.
Children don't normally have to pay tax. To receive interest gross, an HM Revenue & Customs form R85 should be completed otherwise interest paid on savings in Freedom accounts will be taxed in the same way as any other account. R85 forms are available from any of our branches, or call 0845 1 200 100 to have one sent to you. It should also be noted that interest on money given by a parent of the child is only tax-free up to £100 a year, applied separately to each parent.
When you're 21 we'll automatically move your money into a Postal Saver account. You'll still have a cash card, but your account will be managed by post. Once your account has been transferred into Postal Saver, you won't be able to transact over the counter in a branch.
| Account Name | Freedom account |
|---|---|
| Interest rates (AERs) | Variable rate paid biannually, view interest rate |
| Tax Status |
or
|
| Conditions for bonus payment | N/A |
| Withdrawal arrangements | Unlimited withdrawals up to the monthly limit set on the account, subject to daily withdrawal limits |
| Access | Branch, Agency and ATM |
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 29 March 2009
|
Balance £ |
Gross Rate |
Net Rate |
AER % |
|---|---|---|---|
|
£10 and above |
1.74% |
1.40% |
1.75% |
Effective 22 February 2009
|
Balance £ |
Gross Rate |
Net Rate |
AER % |
|---|---|---|---|
|
£10 and above |
2.24% |
1.79% |
2.25% |
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).
