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BANK and BUILDING SOCIETY
(Also called Classic, Current, Gold Current, High Interest Cheque Account, HICA, Prime Account, Premium)
An account with or without an initial minimum investment where money can be paid in and withdrawn with the cheque book provided, sometimes subject to a minimum withdrawal. Some allow you to overdraw, use direct debits and standing orders. These accounts pay a reasonable rate of interest and are available from building societies and banks which were once building societies. Other accounts, usually with the larger and/or longer established banks, pay an almost non-existent rate of interest. Several banks have different accounts some with good rates and others with poor rates.
Who can invest Anyone age 18 or over. Account can be in joint names.
How worthwhile A temporary home for money on its way somewhere else. If you find your bank has a deposit account which you can transfer funds to and from your cheque account by phone, this may be a better deal than keeping money in a Cheque Account with Interest. It is an alternative, but with lower interest, to a Bank and Building Society On-Line Deposit Account or Offshore Bank Instant Access Account for someone who wants quicker access to his or her money. If you have large sums of money credited to your account by Electronic Transfer, it may be more convenient to use an account at a bank which is itself a member of the bank clearing system.
Minimum The level at which reasonable interest is paid is now £5,000 plus.
Maximum Usually none.
Suitable Lump sums. Regular payments (e.g. salary or pensions).
Money back Cheques or cash machine card can be used for withdrawals.
Interest Variable. Calculated daily.
Interest paid Added to account monthly, quarterly, half-yearly depending on the bank.
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 Varies according to the bank.
Passbook None. Statement issued monthly or quarterly.
Children Account Must be held in an adult's name.
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 Phone or call at one of the banks listed below.
Where from The best rates are usually from smaller less well known banks or smaller building societies or operated on-line. Some of the new names are owned by large UK banks but may not always remain so. Best rates at : Click here for rates and best buys.
Other Bank and Building Society Accounts
Last updated 15
December 2007.