Childcare Plus children’s allowance savings account

Sarah1916 · 01-12-2019 9:09pm #1

I want to set up the children’s allowance savings account with An Post called the Childcare Plus account. I went to the post office to get an application form and the girl had never heard of such account. After talking to her manager she got me an application form but when I got home I realised it’s a repayment form. I would have expected that it would be a new account set up form. After googling it seems to be only the repayment form available? Does that make sense to people? Has anyone set this up before and know how? They can’t really help In my post office as it seems like they have no experience with this account. Any help would be appreciated, or is there such thing as an An Post helpline?

pwurple · 02-12-2019 12:05am

I did set one up, and would strongly advise against it. It was harder to close it and get the money out, than what you are experiencing here, it is an incredibly poorly run scheme.

Each payment goes into a zero interest holding account until there are 12 payments, then it transfers into a low interest account, for either 5 or 8 years with a different interest rate each year. Your next set of payments go again into a zero interest account. Every year, you get a new set of account numbers, which you have to track for repayment, and all of them have to be then applied for separately to get your money back when you want it. We moved house during this, and you would swear we had gone to the moon.

Because you effectively earn zero for the first year, their advertised rates are overstated. You would be probably better off opening a credit union account or a regular savings account for the child benefit.

detoxkid · 02-12-2019 12:11am

I opened one too. We withdrew from it last year when we bought a house and I actually found it very easy to get the money out. But I do agree there are better accounts out there for interest etc.

Delta2113 · 02-12-2019 12:18am

https://www.statesavings.ie/our-products/childcare-plus-6yr

I'm a big fan off State Savings (Well when they had high rates) but for some reason they make it a mystery on how to open this product.

"Child Benefit
If your monthly child benefit is paid into your bank account you
can arrange for it to be paid into an Instalment Savings account
by completing the attached Direct Debit mandate.
Alternatively you can arrange for the automatic payment of your
monthly Child Benefit by the Department of Employment Affairs & Social Protection directly into an Instalment Savings account –
For contact details see page 6."

I don't see any contact details for the Department of Employment Affairs & Social Protection.

Ring them on 1850 30 50 60 / +353 1 705 7200

Henry Ford III · 02-12-2019 3:08pm

The rates are very poor. You might be better off looking at a savings plan? Get proper advice.

irishproduce · 26-10-2020 6:59pm

Stumbled on this handy thread as I have childcare plus accounts coming out my ears.
As others noted, you get these different account numbers all the time.

I have a bunch of the letters received over the years here and I can see the interest rates are after going from 20% for 5 years invested, down to 7% for 5 years invested in the period 2010 - 2015

Does that seem right? The investor is presumable in for the term without knowing the rates in advance?

Does anyone know if the statesavings dept publish alerts that they are changing rates?

I would like to read on the announcements historically as the rates were changing

Thanks

Childcare Plus children’s allowance savings account

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