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BANK and BUILDING SOCIETY
An account with or without an initial minimum investment where money can be paid in and withdrawn with the cheque book provided, sometimes subject to a minimum withdrawal.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. Some accounts used to pay a reasonable rate of interest but now most pay nothing or a minute rate. This type of account no longer exists but might return if high interest rates return which won't be for some time.
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 or internet, this will be a better deal than keeping money in a Cheque Account .
Minimum None.
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 £85,000 for each investor in each licensed bank or building society under the investors compensation scheme if the institution goes bust.
How to invest Not possible at present.
Where from Check charges. Interest currently non-existent. .
Other Bank and Building Society Accounts
Last updated 7
November 2011.