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BANK and BUILDING SOCIETY
Monthly Saver
Account(Also called: Regular Savings Account)
A commitment to save a certain amount each month in return for higher interest. Some societies allow you to raise or lower monthly payment and to miss a number of payments each year. Partial withdrawals may be allowed.
Who can invest Anyone.
How worthwhile Good value for short term savings starting with small amounts.
Minimum £1 a month:Safeway. £5 a month: Halifax. £10 a month: Bradford & Bingley, Coventry, Yorkshire Building Society. £20 a month: Britannia, Monmouthshire, Nationwide and most others.
Maximum £2,000 a month: West Bromwich. £1,000 a month: Nationwide, Monmouthshire. £600 a month: Teachers. £500 a month: Britannia, Leeds & Holbeck. £100 a month: Bradford & Bingley, Yorkshire Building Society. Others usually £200 or £250 a month.
Suitable Regular savings. Sometimes a society allows up to 3 months payments to be made in advance. Sometimes payments can be missed.
Money back If account is closed: immediately or within a few days (sometimes 1 month). Partial withdrawals vary according to the society from none to 2 to 3 a year to as many as you like.
Interest Variable.
Interest paid Yearly. Yorkshire Building Society, Coventry on anniversary. Monmouthshire in March. Britannia in January. Nationwide, Teachers in December
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 Sometimes. Statement sent usually once a year.
Children Unsuitable.
Risk 90% compensation scheme on the first £20,000 (100% on first £2,000, 90% on the next £33,000 from 1 December 2001) for each investor in each bank or building society licensed by the Financial Services Authority.
How to invest Call at or phone a building society branch. Regular payment can then be made by visiting the branch, by post, bank standing order, direct debit or by credit transfer. A list of rates is published monthly in Money£acts.
Where from Check rates on : from Money£acts.
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Last updated 24 November 2004