# Bank of Ireland Now Paying 2.5% for Children's  Savings Account - max €5,000



## Lightning (29 Aug 2017)

Bank of Ireland have increased the credit interest rate from 0.25% AER variable to 2.50% AER variable for customers who are aged up to 13 who have a Young Savers 'Current Account'.

Maximum balance 5,000 EUR. More here.


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## Brendan Burgess (29 Aug 2017)

So they are paying a maximum of €125 a year to attract young customers. 

Brendan


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## Lightning (29 Aug 2017)

Yeah, nothing substantial but in a near-zero-rate deposit environment it is better to a least get a small return than no return.


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## qwerty5 (30 Aug 2017)

Brendan Burgess said:


> So they are paying a maximum of €125 a year to attract young customers.
> 
> Brendan



Not quite. From that doc as soon as you go above €5000 you revert to 0.25%.
So if you'd €5000 in it for a year you're going to have €5125 after the year. So you'll go to 0.25%

So probably better to keep it at €4775 per year and take out the interest whenever it's applied.


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## NewEdition (30 Aug 2017)

Can you send a link to this? The BoI site still says 0.25%.


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## Lightning (30 Aug 2017)

qwerty5 said:


> Not quite. From that doc as soon as you go above €5000 you revert to 0.25%.
> So if you'd €5000 in it for a year you're going to have €5125 after the year. So you'll go to 0.25%
> 
> So probably better to keep it at €4775 per year and take out the interest whenever it's applied.



You can keep the balance at €4,999 each day except the day before the interest payment.


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## Lightning (30 Aug 2017)

NewEdition said:


> Can you send a link to this? The BoI site still says 0.25%.



See link in the opening post to the Bank of Ireland website.


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## AlbacoreA (30 Aug 2017)

CiaranT said:


> You can keep the balance at €4,999 each day except the day before the interest payment.



...Communion and Confirmation money, has really gotten out of hand...


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## Black Sheep (30 Aug 2017)

I was surprised to find I could open one of these accounts for a child with no ID required. I am a parent but not the parent of that child.


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## theresa1 (30 Aug 2017)

Black Sheep said:


> I was surprised to find I could open one of these accounts for a child with no ID required. I am a parent but not the parent of that child.



Wait till you try and do a withdrawal in the future.


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## Black Sheep (31 Aug 2017)

This account is in the child's name so it's the child will be withdrawing and if he/she is 13 he has his own ATM card


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## RedOnion (31 Aug 2017)

Black Sheep said:


> I was surprised to find I could open one of these accounts for a child with no ID required. I am a parent but not the parent of that child.


Correct me if I'm wrong, but are you saying you opened an account without providing ID for either yourself or the child?


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## Black Sheep (31 Aug 2017)

I am an account holder there for many years so they have *my* ID. No ID required for the child, just DOB


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## RedOnion (31 Aug 2017)

If the child is under 7, it's opened in your name, with the child's name annotated. 

Not sure how they'd not complete ID checks if opened in the child's name.


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## Black Sheep (31 Aug 2017)

Young saver account is for child aged 0 to 13, in the child's *own* name. Hence my surprise


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## RedOnion (1 Sep 2017)

From the account T&C's:
"3.3 When the Account is opened by an adult for you , the money in the Account is held by 
them for you ‘in trust’ until you are 7 years 
old. "

I don't have one if these, but similar with AIB, and they operate the same way - I had to do the ID, but child gets statements. The account is in my name though until they're older.


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## Lightning (2 Oct 2017)

The Irish Times have an article on this account today here.


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## Marobar1 (17 Mar 2020)

Digging up an old thread here, but just wondering is there anything to stop me setting this up in my child's name and just closing the account and therefore withdrawing the funds when needed??


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## Black Sheep (20 Mar 2020)

Hi Marobar. I don't think you can withdraw from these accounts as they are in the child's name. For me (as a grandparent) it is a way is helping them when they are older, perhaps college, year abroad etc. You can have the details, statements etc sent directly to them or to you complete with ATM cards. 
I opened the accounts on line. Not sure if these accounts are still available


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## Drakon (8 Sep 2020)

Effective 13th November 2020, the interest rate structure on this account will change. One rate will apply to the full balance. This rate will be 0.25% AER.


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## PolkaDot (9 Sep 2020)

Can confirm this is correct. 
https://personalbanking.bankofirela...t-Rate-Sheet-Effective-13th-November-2020.pdf


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## dpw121 (23 Sep 2020)

Banks are great at informing customers of changes. Both of my kids have young savers accounts. I received a letter for each account on 3rd September detailing the rules around the €5000 limit and the 2.5% and 0.25% rates. No mention of the changes coming into effect in November, which make this information irrelevant as far as I can see.


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## PolkaDot (23 Sep 2020)

dpw121 said:


> Banks are great at informing customers of changes. Both of my kids have young savers accounts. I received a letter for each account on 3rd September detailing the rules around the €5000 limit and the 2.5% and 0.25% rates. No mention of the changes coming into effect in November, which make this information irrelevant as far as I can see.



Completely agree. I only opened youth saver accounts a few weeks ago for my kids under the impression that the bonus rate of 2.5% was staying in place. Information given was very misleading.


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## AndroidMan (23 Sep 2020)

Any good alternative accounts out there??


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## Drakon (23 Sep 2020)

Did you turn over the page?
I too received two letters dated 03 September. On the first page it indicated that some information had previously not been clear. And this was then clarified. 
Then, on the second page, following the apology the new interest rates were detailed, stating these would take effect as of 13th November. 
To my eyes, this could not have been made clearer.


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## Drakon (23 Sep 2020)

AndroidMan said:


> Any good alternative accounts out there??


I haven’t check yet.


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## Drakon (24 Sep 2020)

Apparently EBS are dropping theirs from 1.75% to 1.00%


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## dpw121 (24 Sep 2020)

Drakon said:


> Did you turn over the page?
> I too received two letters dated 03 September. On the first page it indicated that some information had previously not been clear. And this was then clarified.
> Then, on the second page, following the apology the new interest rates were detailed, stating these would take effect as of 13th November.
> To my eyes, this could not have been made clearer.


You are absolutely right. I stupidly assumed they had delivered the message on the first page. I like the end of the letter where it says "You don't need to do anything". Well, apart from look for a better place to put the account balance maybe


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## Lightning (24 Sep 2020)

Drakon said:


> Apparently EBS are dropping theirs from 1.75% to 1.00%



Plausible. EBS are changing rates on 24 November 2020 but they have not published a new list yet.


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## Marobar1 (24 Sep 2020)

Drakon said:


> Apparently EBS are dropping theirs from 1.75% to 1.00%


Where did you hear that? I was just about to open with them, but no way will I bother if they are reducing this to 1%


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## Drakon (24 Sep 2020)

Marobar1 said:


> Where did you hear that? I was just about to open with them, but no way will I bother if they are reducing this to 1%


Post #20:




__





						Savings Account for Child?
					

Hi,  We recently had a baby and we want to set up a savings account for her. The purpose of the account will be for her future education. Can anyone recommend a suitable account, please? We are considering the Post Office.  MM.



					www.askaboutmoney.com


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## Drakon (24 Sep 2020)

Marobar1 said:


> Where did you hear that? I was just about to open with them, but no way will I bother if they are reducing this to 1%


Just checked my post. I got a letter confirming this.


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## PolkaDot (24 Sep 2020)

Was also planning to open an EBS account when it was at 1.75%. Hardly worth it now. Seems the only way to get any half decent yield now would be through some sort of investment fund.


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