We currently have 2,345 junior saver accounts totalling over £325,000. These young savers are the next generation of our membership and, unlike many young people; they are the lucky ones who have been given an opportunity to understand the importance of managing their money and to gain knowledge of different financial products at an early age.


London Mutual Credit Union (LMCU) is a community-based financial co-operative. The credit union's mission is to provide its members with access to reasonably priced financial services and encourage the development of good financial practice. It is a not for profit financial institution that is owned and controlled by its members. All profits are paid back to members as dividends on their savings and there are no external shareholders. The credit union, like banks and building societies, is regulated and supervised by the Financial Services Authority (FSA). Savers' deposits are protected by the same Financial Services Compensation Scheme that covers banks and building societies.

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Section 9 of Credit Union Act 1979, section 20 of the Industrial and Provident Societies Act 1965 and the Trustee Investment Act 1961 all govern the operation of Young Savers Accounts Children up to the age of 16, who live in the London Boroughs of Southwark or Lambeth may open a Young Savers' Account with London Mutual Credit Union. The maximum amount a Young Saver may have in their account is £5000. Young savers are not eligible for a dividend, however, money earned by the investment of Young Savers funds must be distributed as interest to the Young Savers after deduction of expenses incurred in operating the accounts.

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The Young Savers' Account is the membership account at LMCU for savers under the age of 16. Key features of the account are as follows:

  • Free Membership
  • No initial minimum deposit required
  • Flexible savings amounts
  • Instant Access to savings - Range of withdrawal options depending on amount (Instant cash for smaller amounts, notice if cheque required)
  • Annual Interest Payments
  • Free Young Savers' Welcome Pack / Folder
  • Free Gift when child saves £5
  • Free Gift when child completes a passbook
  • Can operate Holiday and Christmas savings accounts
  • Free family membership*
  • Lifetime membership

*Parents and other family members of young savers as well members of the school's staff can also enrol as adult members and take advantage of the low interest loans the credit union offers.

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London Mutual Credit Union aims to serve the whole community including children and young people. This scheme provides a specially designed savings account for young people under the age of 16. Through membership of London Mutual Credit Union, local children and young people will learn from an early age about sensible money management.

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  • Encourages children to develop the savings habit in their formative years
  • Assists in the development of basic numeracy skills, financial literacy and an understanding of personal finance
  • Develops transferable skills in basic book-keeping, accounting and record keeping
  • Develops teamwork abilities and organizational skills
  • Involves the children in working with the wider community in which they live, helping them to develop links with other organizations and people, giving them a sense of belonging and self worth.

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The collection point at the school will be part of London Mutual Credit Union Ltd. Instructions for making deposits and withdrawals are as follows:

Deposits are to be made at the school collection point on the day and at the time specified. The passbook is required every time the Young Saver makes a deposit. Passbooks will be updated when deposits are made. When the school is closed at term times or when children have left the school, all members can carry on making transactions at one of London Mutual Credit Union's branches.

Share Withdrawals on a Young Saver's Account may only be made with the full authority of the Young Saver's Trustee. If the Young Saver is under the age at which they are allowed control of their own account by the Trustee, the Trustee should complete and sign a Share Withdrawal form.
When completing a Share Withdrawal form, the preferred payment option should be selected. The withdrawal options are as follows:

  • Withdrawals in cash at the Savings Club for amounts up to £5
  • Collect a cheque at the Savings Club - 7 days notice required
  • Collect a cheque at a nominated credit union branch
  • Cash withdrawal at a credit union branch for amounts up to £50
  • Cheque by Post - on request cheques can be made cashable at the local designated Post Office. Passbooks must be presented for withdrawals to be processed.

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Membership of the credit union can be terminated at any time on completion of the required documentation.

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London Mutual Credit Union will establish the Young Savers' Scheme within the school. However, the support of school staff, parents and governors will be needed to guarantee success. There is no direct financial cost to the school. Input will be required from participating schools in the following areas:

The School should:

  • decide on what date the school wants to start the Young Savers' Scheme
  • provide sufficient appropriate adult volunteers, there must always be two adult cashiers (under the age of 70) at the collection point (it is an insurance's requirement). Ideally, the school should select at least 4-6 volunteers so that there is cover for absences
  • ensure that any personnel who come into unsupervised contact with young savers are not prohibited from such work under the provisions of the Children Act 1989
  • identify and agree with LMCU the location and times of collection points (recommended: early morning, just before school starts, along a Breakfast Group). The collection point will become a self-contained operation within the school but also will be part of London Mutual Credit Union, and as such will contribute to the social and economic well being of the community.
  • complete a School Registration Form with all the above details and return it to the LMCU together with a sheet of School headed paper
  • encourage the young savers to use LMCU branches during holiday times when the school is closed
  • encourage the Young Savers to continue saving with LMCU after leaving school

Adults associated with the school may:

  • join the credit union and pay in at the collection point
  • receive training in LMCU's operating principles, philosophy and practices
  • receive in-house and theoretical training in matters such as collection point procedures
  • receive on going support and advice from the LMCU

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  • Assist in the promotion of the Young Savers' Collection Point, provide marketing and awareness materials (leaflets, posters)
  • Make presentations to all interested groups (school staff, parents, pupils)
  • Provide training to all those associated with the running of the Young Savers' collection points. The training for the adult volunteers will take approx. 2 hours, usually the week before the first collection; a minimum of 4 Young Cashiers will be trained by LMCU
  • Provide a member of LMCU staff to support running a collection point
  • Assist with writing and possibly printing an introductory letter to be sent to parents. It could contain a letter on the school's headed paper informing about the Young Savers' scheme, Young Saver's application form for the parent to complete and send back to school with the child and their first deposit, some general information about LMCU, membership application for the parent to also enroll as a saver
  • Provide all the necessary materials: a cash tin, a calculator, stationery, saving cards for young savers, paying-in books for adult savers, Blue Pouch and seals for transfer of documents between the school and LMCU, forms, collection sheets etc., Money Laundering Regulations notice, Financial Services Ombudsman notice
  • Provide incentive gifts for young savers
  • Develop appropriate operating procedures to ensure efficient service to the school
  • Establish and maintain working links with the parent-teacher association and other similar groups within the school
  • Take an active involvement in the school for the benefit of pupils in relation to the school curriculum, e.g. improved numeracy skills, general mathematics

Providing ethical financial services since 1982