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Other Bank and Building Society Accounts

BANK and BUILDING SOCIETY

On-Line Banking

An account, which may or may not pay interest, where you can withdraw immediately, generally without notice or penalty but often by accessing it on-line or by using a cash card or cheque book provided. The accounts also allow you to pay bills on-line and transfer money to other accounts, see your statement on screen and print it out. Deposits may have to be made by post unless your account is from a bank or building society with High Street branchs.

With all the banks, On-Line Banking can be an add-on to an existing account or you can open an account especially for On-line banking. The extent to which you can transfer money varies between banks. For instance some won't let you transfer money to another bank - others won't let you transfer money to another person; you may regard this as an advantage if all you want is an up to date statement at any time. For high interest deposit type accounts see Bank and Building Society On-Line Deposit Account

Who can investAnyone.

How worthwhile Useful if your really need your bank statement right up to last night's closing balance on your computer screen.

The companies may expect you to memorise two or three unmemorable passwords but many allow you to choose your own. You could consider instead Telephone Banking where you can phone either a human or a computer (some banks offer both services) to carry out the same operations. Might be worth adding to an existing account if you already bank with one of the banks. If you just want high interest, see Bank and Building Society On-Line Deposit Account.

Minimum Same as for the Bank's normal accounts.

Maximum Usually none.

Suitable Lump sums.

Money back Usually two or three working days. You transfer the money on-line to another bank account and it is usually available for use on the fourth working day after your transaction. All banks have a cut-off time each day; transactions made after this time count as being made a day later; this cut off time varies from 11.30am to 5.30pm depending on the bank or building society.

Interest Varies.

Interest paid Usually yearly. Credited to the account.

Tax 20% tax is deducted from any 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 Sometimes there is a set up fee of £15 to £25.

Passbook Statements are a usually sent with each transaction or yearly.

Children You must be over age 18 except at First Direct and Royal Bank of Scotland. Age limit 16 at Co-operative Bank and NatWest.

Risk 100% compensation scheme on the first £35,000 since 1 October 2007 for each investor in each UK licensed bank or building society under the investors compensation scheme. There is a theoretical risk that if you are not careful to conceal your password, money can be stolen from your account as no signature is required for transactions. You might want to check the bank's conditions of use to see what your liability might be.

How to invest Ensure the organisation is solid: Smile is part of the Co-operative Bank. First Direct is part of HSBC. But who are Marbles? And who now owns Egg? Go to the company's Web site and complete an application. If they send you a CD to set it up this may or may not intefere with your existing Web set up.

Where from Best rates at : Click here for more details of what's on offer.

Other Bank and Building Society Accounts

Last updated 15 December 2007.