One Day is a regular savings account designed to help you save for your child's future. Whether you're putting something aside for University, their first car, a significant event or you simply want to show your child the art and benefits of money management, the One Day account gives your children accessible savings without the headaches.
An account can be opened with just £10, which is also the minimum balance. Interest is paid twice a year at the end of June and December.
Available from birth to 20 years of age, the One Day account can be opened in the child's name or in trust on their behalf - so it can be kept secret if you wish. With children aged seven or under, we require a parent or guardian to act as trustee for the child when opening the account. Though there can be up to 3 trustees, we can only allow one child on the account
Withdrawals can be made at any of our branches. The One Day account offers instant access, giving you the freedom to withdraw money for your child without notice.
Children don't normally have to pay tax. To receive interest gross, an HM Revenue & Customs registration form R85 should be completed otherwise interest paid on savings in One Day accounts will be taxed in the same way as any other account. R85 forms are available from all 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 the young saver reaches 16 they must compete a new R85 form if they are still eligible to receive interest gross. If the account is opened in trust and needs to remain so until the young saver reaches 18 or 21, the trustee would need to pay tax on any interest earned from the young saver reaching 16, and if the child is eligible to receive interest gross claim this back from HM Revenue & Customs.
Upon turning 21, the savings will automatically be transferred to an Access Saver account, regardless of balance. As an added bonus, all savers will be sent a voucher for £100 to be used when they take out one of our mortgages.
| Account Name | One Day account |
|---|---|
| Interest rates (AERs) | Variable rate paid biannually, view interest rate |
| Tax Status |
or
|
| Conditions for bonus payment | N/A |
| Withdrawal arrangements | Unlimited withdrawals, 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 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).
