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3 Year Children's Fixed Rate Bond (Issue 1)

The 3 Year Children’s Fixed Rate Bond (Issue 1) allows you to invest a child’s savings for a fixed term of three years, at an interest rate that won’t change.

About the account

About the account

The information below will give you an overview of the account, but please read the terms and conditions for all the details.

Summary box

Account name

3 Year Children's Fixed Rate Bond (Issue 1)

What is the interest rate?
Minimum investment
Gross/AER p.a. %
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The Gross rate is the contractual rate of interest payable before deduction of income tax at the rate specified by law.

The Annual Equivalent Rate (AER) is a notional rate which illustrates what the gross interest rate would be if interest was paid and added to the account annually.

£1,000+ 2.00

The interest rate is fixed for three years.

We calculate interest on the balance of your account at the end of each day. You earn interest from the day your funds are paid into your account, until the day before your bond matures.

Interest is paid annually on 31st December and on the maturity date.

Can The Cambridge change the interest rate?

The interest rate is fixed until the maturity date. Interest is paid annually on 31st December and on the maturity date.

What would the estimated balance be after 36 months with a £1,000 deposit?

The following projection assumes the account is opened on 1st January and no further deposits or withdrawals are made. Projections are for illustrative purposes only and do not take into account individual circumstances.

Deposit
Gross/AER p.a. %
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The Gross rate is the contractual rate of interest payable before deduction of income tax at the rate specified by law.

The Annual Equivalent Rate (AER) is a notional rate which illustrates what the gross interest rate would be if interest was paid and added to the account annually.

Estimated balance after 36 months
£1,000 2.00 £1,061.21
How do I open and manage my account?

Available to savers aged up to and including 15 years old. The account must be opened with an operator who will be removed when the child turns 18.

You can open your account at any of our local branches or via post.

Invest between £1,000 and £20,000.

Once opened funds can’t be added to the account.

The overall maximum holding by any one person in respect of all accounts with The Cambridge is £1,000,000.

Can I withdraw money?

Withdrawals and account closures aren’t permitted during the fixed rate term.

Upon maturity the balance including any accrued interest will transfer to a Maturity Account which provides instant access to your money.

Additional information

No tax will be automatically deducted from the interest paid on this account.

You need to tell HMRC if your child earns more than £100 in interest from money given by one parent, or more than £200 if given by 2 parents, this interest is liable for tax. You may need to pay tax on any interest that exceeds your Personal Savings Allowance. For more information please contact HMRC.

Tax treatment and rate of interest payable will depend on individual circumstances and may change in the future.

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Apply now

Apply now

The 3 Year Children's Fixed Rate Bond (Issue 1) can be opened in branch or via post.

Terms and Conditions

Before choosing this account, please read all the terms and conditions.

If you do not understand any point, please call us on 0345 601 4021 for further information.

3 Year Children’s Fixed Rate Bond (Issue 1) product information and special terms and conditions

Terms and Conditions for Savers


Verifying your identity

When applying for this account we'll need to verify your identity as well as the child's. We normally use an electronic verification system to verify the identity of the account holder(s) but there may be occasions where we may need to ask you for further proof of your identity. We'll also need to see documented proof of the child's identity. Our Verifying your identity page includes our requirements for both account holders and children under 18.


To apply by post

To apply by post you need to download and complete the application form available below. Once you have completed your application form please send it with your cheque deposit and proof of the child's identity to the freepost address below. Cheques should be made payable to the account holder e.g. Mr A Anon. Please be aware we have no control over timescales for the freepost postal service.

FREEPOST THE CAMBRIDGE BUILDING SOCIETY (Please use upper case text)


Financial Services Compensation Scheme (FSCS)

We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a building society is unable to meet its financial obligations.

It's important that you read the FSCS Information Sheet. It provides basic information about the protection of your savings deposits.

FSCS Information Sheet


Download an application form

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