Children's - 2 Year Fixed Rate Bond (Issue 1)

Product details

What is the interest rate?

4.10% Gross/AER

The interest is paid annually and will be credited to your account after close of business on 1 January.

Can Progressive change the interest rate?

No, the interest rate is fixed for 2 years.

What would the estimated balance be after 12 months based on a £1000 deposit?

£1,083.68

This is an example based on a deposit of £1,000 made on account opening for the term of the bond.

How do I open and manage my account?

The bond is available to existing Members and new customers resident in Northern Ireland up to and including 15 years old.

The account must be opened by an adult (parent, guardian or relative) on behalf of the the child.

There is a minimum lodgement of £1 required to open a bond.

The maximum balance for the bond is £20,000.

The bond can be opened and operated at any of the Society's branches, agencies or by post.

Can I withdraw money?

Withdrawals and early closure of the bond are not allowed.

We will write to you in good time before your bond matures to advise you of the options available to you for the closing balance of your bond.

If we do not receive written instructions from you, the quoted fixed rate of interest will cease to apply on the date of maturity and the balance of your bond will be rolled over into a variable rate instant access account for children, at the interest rate applicable at that time.

Additional information

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. This will enable you to compare more easily the return you can expect from your savings over time.

Gross rate quoted is the taxable rate of interest without deduction of income tax.

If you give your child money that earns over £100 a year in interest then all of this interest will be taxed at the appropriate rate as if it were your income. This limit is raised to £200 if both parents give money to the child each year.

These limits apply to income earned from money given from parents, step-parents or guardians only. It does not apply to money given by other family members such as grandparents or friends.

We are unable to comment on an individual's tax position. You may need to consider, professional, independent tax advice if you are unsure of your personal circumstance.

You may need to pay tax on any interest that exceeds your Personal Savings Allowance. For more information please visit HM Revenue & Customs (HMRC) website hmrc.gov.uk.

The interest rate is correct as of 1 November 2025.

For further information refer to the terms and conditions of the account and the terms and conditions contained within the Savings General Terms and Conditions. You can obtain a copy of these documents in the 'Useful Information' section below.