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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. Cash machines at garages and convenience store 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 12-16 or over. You don't need a bank current (cheque book) account.

How worthwhile Convenient if you make many cash transactions. Make sure the machines you use don't make a charge, in most cases only if the machine is from another bank or building society.

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 is usually £200 but can vary from bank to bank. Some accounts allow £500 a day. Also sometimes 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 on-line account or have access to phone banking where transfers of up to £10,000 a transaction may be possible.

Interest Variable. Sometimes higher for larger amounts. Some accounts include a bonus which may amount to a penalty in some circumstances. Note some accounts pay very poor interest. Usually the poor value accounts are available from branches whereas the best value ones are on-line.

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

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.

Children Over age 12 at Britannia, Halifax, Lloyds TSB, Nationwide; 13 at Abbey National, Nat. West.; 14 at Alliance & Leicester, Royal Bank of Scotland, Dunfermline; 16 at Midland and others. See also Bank and Building Society Children's Account.

Risk 100% compensation scheme on the first £35,000 since 1 October 2007 for each investor in each licensed bank or building society under the investors compensation scheme.

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 Alliance & Leicester, Bank of Scotland, Coventry, Halifax, In Euros and/or US$: Cater Allen.

Other Bank and Building Society Accounts

Last updated 20 October 2007.