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Other Bank and Building Society Accounts

BANK and BUILDING SOCIETY

Telephone Banking

An account, which may or may not pay interest, where you can withdraw immediately, generally without notice or penalty by phoning either a person or a computer (some banks offer both services) or by using a cash debit card or cheque book provided. The accounts also allow you to pay bills on-line and transfer money to other accounts. Deposits may have to be made by post unless your account is from a bank or building society with High Street branches. With most banks, Telephone Banking is an add-on to an existing account although you can open an account especially for Telephone Banking.

You can generally do more with Telephone Banking than you can with internet 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. Some let you do both.

Who can investAnyone.

How worthwhile A very useful service which can now be added to most bank accounts. It is particularly useful for switching money to and from an interest paying account to a current account. Some banks allow you to move money to and from business accounts too. Worth adding to an existing account if you already bank with one of the banks. Compare with Postal Account or Internet Deposit Accountwhich shows the accounts which pay the highest interest. A few banks offer accounts in US$ or € Euros. If you want statements to print out or view on screen, consider as well Internet Banking.

Minimum Same as for the Bank's normal accounts.

Maximum Usually none.

Suitable Lump sums.

Money back Same as the account to which it is linked. Sometimes next day for a transfer from an interest paying account to a cheque account/

Interest Varies.

Interest paid If interest is 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 Generally free to existing customer

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

Children Usually over age 18 except at Co-operative Bank, First Direct, NatWest, Royal Bank of Scotland.

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. 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 if someone impersonates you.

How to invest Phone your bank and ask for an application.

Where from

Other Bank and Building Society Accounts

Last updated 15 October 2007.