To secure a wonderful future for your kids, you need to save and also teach them to do so too. To achieve this, Lloyds Bank offers you the opportunity to fulfil these dreams. This article is a complete guide to opening a Lloyd account for your child to ensure that they live their dreams to the fullest.
Remember that adult money habits are formed by age seven. Therefore it is essential that parents and guardians help to encourage children to save early to create good money habits and afford special items. As you know, there are many different ways to contribute to a child’s financial future including savings, premium bonds, investments and pensions.
Before you decide on the type of account to open for your child, consider:
The interest rate the account offers.
If you can easily pay in a lump sum or make regular deposits.
Ease of withdrawal of funds.
Why Choose Lloyds Bank?
Lloyd bank has a range of accounts which helps you plan ahead for the future. For instance, the Lloyds Bank Child Saver helps you want to create an instant access savings account to save for your child aged 15 or under. Also, the Junior ISAs with higher interest rates than child savings accounts, but only offer access to the money once a child turns 18. However, since the child will control the account at the age of 18, it’s a good idea to ensure they manage it carefully.
Also, Lloyd bank offers you the opportunity to open stocks and shares ISA for a child. Junior Stocks and shares ISAs allow you to put a child’s savings into investments such as funds. These ISAs are generally riskier than cash ISAs. However, any profit earned is tax-free and could create a higher total return on any money invested.
Furthermore, you can decide to have Premium Bonds which are investment products where you are entered into a monthly prize draw and can win money tax-free, instead of earning interest or receiving a dividend. They are issued by National Savings and Investment (NS&I) and are backed by the government. You can buy them on behalf of your child or grandchild.
How to Open a Lloyds Account For a Child
Opening a Lloyds account for a child can be done online or offline. To open an account online, visit the Lloyds bank official website. For offline registration, visit the nearest Lloyds bank branch and fill out the forms, answer the questions and provide the required documents. Ensure you add your contact details so as to receive a confirmation when your bank account opens.
Documents needed to open a Lloyds bank account in the branch
It is important for you to know the documents needed to set up the account for your child before your visit to the bank for registration. This enables you to go prepared so that the process of opening a new account will be easy and fast.
Also, note that you need to be at least 18 years old to set up a bank account with Lloyds. You’ll also have to prove your identity in a branch as part of the verification checks. Below are other documents required:
Proof of identity – A current photo, ID card, driving licence or UK passport.
Proof of address –
HMRC tax notification – Tax Identification Number (TIN) for any countries you are or have been a tax resident in over the last two years.
PaySlip – This shows your monthly income after tax.
Employment status – Occupation type, employer’s name and start date and a copy of your contract.
Bank, building society or the UK credit union statement.