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Other Bank and Building Society Accounts

BANK and BUILDING SOCIETY

Cash Card Account

(Also called Instant Savings Account, Saver Plus, Flexible Savings)

An account with a low minimum where you can easily pay in at a branch or by post and withdrawals can be made with a plastic debit card from a cash machine. Sometimes deposits can be made by machine too. These accounts are also available in Euros and US$ from a few banks. Most cheque book accounts also offer these cards too.

Your card can be used in cash machines at other banks and building societies in the UK and abroad. Check the charges for using other companies' cash machines before you sign up and avoid those that charge your bank. Cash machines at garages, convenience store and motorway services often make fixed additional charges whereas most banks who are members of Link don't charge each other. These charges and who charges who, change from time to time.

All Visa cards can be used abroad. In the European Union there are not usually extra charges for Visa cards but some countries elsewhere make extra charges, notably the US and Israel where the charge is either a fixed amount, say $2 or a %. Where your account is in sterling, the exchange rate plus charges for cash machine withdrawals can be worse than paying cash to change money at a bureau de change. If you have an account denominated in US$ or Euros and withdraw cash in the US or Euro zone countries respectively, there are no hidden charges and the rate of exchange when you initially pay money into the account should be significantly better, but you should check at the time.

Who can invest Anyone 11-16 or over. You don't need a bank current (cheque book) account. At 11 the debit card can only withdraw cash from a machine; later, with parental permission

How worthwhile Convenient if you make many cash transactionsand you avoid extra charges (at some cash machines or when you withdrwa in a different curency abroad).

Minimum £1 to £500.

Maximum None.

Suitable Lump sums. Regular savlngs. Deposits can be made at some machines. Salary can be paid direct into many accounts.

Money back The maximum daily withdrawal at a cash machine is usually £300 but can vary from bank to bank. Some accounts allow £500 or more a day. Also sometimes you can get cash over the counter at your own bank, especially if the machine is out of order. To get large amounts out (other than in cash) you need to operate anon-line account or have access to phone banking where transfers of up to £30,000 a transaction may be possible. Amount depends on you and the bank.

Interest Variable. Usually next to nothing since 2008. Some accounts include a bonus which may amount to a penalty in some circumstances. Note most accounts pay very poor interest. Usually the poor value accounts are available from branches whereas the better value ones are on-line.

Interest paid Usually yearly either at a fixed date or on the anniversary of opening the account. Sometimes monthly.

Tax 20% tax is deducted from the interest. Non-taxpayers can reclaim the tax from the Inland Revenue or have interest paid with no deduction. Higher rate taxpayers have to pay extra tax; basic rate taxpayers don't.

Fees to pay Check before you invest. Some have so many withdrawals a month or year free, then charge 60p to £1 each. Some banks charge for every transaction. There may be fees from other bank's cash machines. Cater Allen makes a £15 charge for foreign currency cheques paid in to its Euro or US$ accounts. Ask what charges are made before you open the account.

Passbook None. Statements sent or online statements.

Children Over age 11 to 16 depending on the bank Bank and Building Society Children's Account.

Risk 100% compensation scheme on the first £85,000 of each investor in each licensed bank or building society under the investors compensation scheme if the institution goes bust.

How to invest Check the rate offered. Some advertise out of date rates. You can get detailed rates for the amount you want to invest from Moneynet . All the best companies are for Internet or telephone banking.

Where from Check out current offers from most banks and bui. In Euros and/or US$: Cater Allen.

Other Bank and Building Society Accounts

Last updated 7 November 2011