Junior Saver
Our Junior Saver Account helps parents and guardians support children and young people to build good money habits and start positive conversations about money and saving.
While parents or guardians manage the account, many families use it as a way to involve children and young people in building good money habits by:
- Talking about the importance of saving regularly
- Watching savings grow over time
- Setting simple savings goals together
This account supports financial learning when families use it as part of these shared conversations.
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5% AER on savings up to £5,000 (Interest calculated monthly on the lowest balance and paid annually)
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For ages 0 up to 18 years
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Maximum monthly deposit £250
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Maximum starter deposit: £500*
How small, regular savings grow
When you save regularly each month, your balance builds gradually over time. As a result, even small contributions can begin to add up.
You earn 5% AER (Annual Equivalent Rate) on your savings, which is calculated monthly and paid once a year at the start of February. However, because each deposit is made at a different point in the year, it earns interest for a different number of months. This means that the full year’s total doesn’t all earn 5% for the full 12 months.
Even so, your savings continue to grow steadily. In addition, if you keep your money in the account, the interest added each year also earns interest. This is known as compound interest, and it helps your savings grow faster over time.
To illustrate this clearly, the example below shows exactly how this adds up.
If you save £20 each month:
| Month saved | Amount saved | Account balance | Months spent earning 5% interest | Interest earned (approximate) |
| January | £20 | £20 | 12 months | £1.00 |
| February | £20 | £40 | 11 months | £0.92 |
| March | £20 | £60 | 10 months | £0.83 |
| April | £20 | £80 | 9 months | £0.75 |
| May | £20 | £100 | 8 months | £0.67 |
| June | £20 | £120 | 7 months | £0.58 |
| July | £20 | £140 | 6 months | £0.50 |
| August | £20 | £160 | 5 months | £0.42 |
| September | £20 | £180 | 4 months | £0.33 |
| October | £20 | £200 | 3 months | £0.25 |
| November | £20 | £220 | 2 months | £0.17 |
| December | £20 | £240 | 1 month | £0.08 |
≈ £6.50 (total interest after 12 months)
≈ £246.50 (the total amount held in this account after 1 year)
Don’t forget about compound interest!
What happens in Year 2?
At the end of Year 1:
- You’ve saved £240
- You’ve gained £6.50 in interest
- Total: £246.50 total
In Year 2, interest is calculated on £246.50, plus any new savings you add.
This means you now earn interest on your interest – this is compound interest.
These figures are for illustrative purposes only.
How to open a Junior Saver account
- Parents or guardians who are eligible to join the credit union can open a Junior Saver account on behalf of the young person.
- The account holder must live, work or study in our common bond areas of the Liverpool City Region, West Lancashire, Wigan, Warrington, Cheshire West and Chester.
- We will need proof of the parent or guardian’s identity and signature is required as you will hold the account in ‘trust’ until the child is 18.
- To open a Junior Saver account, please contact us directly by email enquiries@clcu.co.uk or use the contact form below.
Enquire about a Junior Saver account today
Savings are protected
Your child’s savings are protected up to £120,000 by The Financial Services Compensation Scheme (FSCS). For further information, refer to the FSCS website: https://www.fscs.org.uk
About the account
- The Junior Saver Account is available for children and young people under 18 years of age.
- The account is opened in the child’s name, with a parent or legal guardian acting as a trustee. The trustee oversees the account and authorises withdrawals.
- Only one Junior Saver Account may be held per child.
The Junior Saver Account is designed to help children and young people develop healthy saving habits by making regular deposits and earning interest on their savings. It is not intended for adult investment purposes or for holding large family savings in a child’s name. The account structure and limits are in place to keep the focus on learning to save.
When the account holder reaches 18 years of age, the Junior Saver Account and any linked Junior Excess Account will automatically convert to appropriate adult savings accounts.We will require Proof of Identity and address at the time, as the trustee will no longer be linked to the account.
The terms and interest rates that apply at that time will be those available on adult accounts.
Yes. Your savings are fully protected by the Financial Services Compensation Scheme (FSCS) up to £120,000. This is the same level of protection offered by banks and other financial institutions.
AER stands for Annual Equivalent Rate.
It shows how much interest you would earn on your savings over a year, making it easier to compare different savings accounts. AER takes compound interest into account, which means you earn interest not only on the money you save, but also on any interest that has already been added to your account.
The full Junior Saver Account Terms & Conditions are available to download here: Central Credit Union Junior Saver Account – Terms & Conditions.
The information on this page is a summary and does not replace the full Terms & Conditions.
Managing the account
The Junior Saver Account currently pays 5% AER on balances of up to £5,000.
Interest is:
- Calculated monthly on the lowest balance held during the month.
- Paid at the beginning of February each year, for as long as the account is offered or until the interest terms are amended.
- The amount earned depends on how much is saved and how long it stays in the account.
If your child’s Junior Saver balance reaches £5,000, it will continue to earn 5% AER on that amount.
If savings go above £5,000, the extra amount will be automatically moved into a linked Junior Excess Account. You don’t need to do anything, this happens automatically.
The Junior Excess Account:
- Is held in addition to your child’s Junior Saver
- Keeps savings safe and accessible
- Earns interest at a rate agreed each year by the Board of Central Credit Union, which may change from year to year (last year the agreed rate was 2%)
- Interest earned on the Junior Excess Account is paid by April in the year following the period to which it relates
The Junior Saver Account is designed to help children and young people learn to save regularly and develop good money habits.
To support this, there are some simple limits in place:
- The maximum starter deposit when opening the account is £500*
- The maximum monthly deposit is £250
These limits help:
- Encourage regular, manageable saving, such as pocket money or gifts
- Keep the account fair for all members
- Ensure the account is used as intended, rather than for holding large family savings
Occasional deposits, such as for birthdays or celebrations, are allowed within these limits.
*Unless the child is an existing Junior Member with a larger balance.
You can make deposits at any time, subject to the following limits:
- Maximum starter deposit when opening the account: £500*
- Maximum monthly deposit: £250
The account is designed to encourage regular, modest savings, such as pocket money, gifts, or school savings. Occasional deposits for events like birthdays or celebrations are allowed within these limits.
Central Credit Union may review or restrict deposits that exceed these limits or do not align with the purpose of a junior savings account.
*Unless the child is an existing Junior Member with a larger balance.
Yes. Withdrawals can be made at any time, as long as they are authorised by the parent or legal guardian acting as trustee.
There are no penalties or notice periods for withdrawals. However, withdrawals may affect the overall interest rate that is received.