www.InvestmentGuide.co.uk
www.InvestmentGuide.co.uk Other Bank and Building Society Accounts
BANK or BUILDING SOCIETY
(Also called Simple Save 60, Direct 30)
An account usually with a minimum investment which can be added to. Withdrawals can be made by giving 7, 30, 60, 75 or 90 days notice depending on the bank. Make sure you get the best interest for the amount you invest as most pay more for larger amounts. Some only available as a postal account. Even 30 days can seem a long time if you need money in a hurry, so always keep some immediately available. Longer notice quite often doesn't mean higher interest.
Who can invest Anyone
How worthwhile These accounts may pay much the same as instant access accounts. Consider instead Bank and Building Society Postal or Phone Account or Bank or Building On-line Deposit Account. Compare with National Savings Investment Account or Offshore Bank Notice Account.
Minimum Usually £500 or £1,000.
Maximum Usually none.
Suitable Lump sums. Regular savings.
Money back All or part after the notice period, or usually immediately with loss of interest on amount withdrawn.
Interest Variable. More interest paid for large amounts, e.g. over £10,000, £25,000, £50,000, £100,000.
Interest paid Usually yearly. By cheque, direct to a bank account or left to accumulate. Some also pay monthly, see Bank and Building Society Monthly Income 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 None.
Passbook Statements usually yearly. Building societies and former building societies usually have a passbook too.
Children Suitable for money earmarked for school fees as you know exactly when you need it and therefore when to give notice.
Risk 90% compensation scheme on the first £20,000 (100% on first £2,000, 90% on the next £33,000) for each investor in each bank or building society licensed by the Financial Services Authority.
How to invest See surveys in the press or on-line and check adverts for latest offers.
Where from While these accounts currently pay about the same as Bank or Building Society Postal or Phone Account or Bank or Building On-line Deposit Account there is little point in investing in them unless you actually want to wait a long time to get your money. However you can check the best rates at : Click here for the best rates and phone numbers from Money£acts. For larger amounts, you can get detailed tables for the amount you want to invest from Moneynet.
Other Bank and
Building Society Accounts
Contents
If any of the direct links above at
Where from don't work, please
let us know so we can update
them.
Last updated 24 November 2004