www.InvestmentGuide.co.uk
www.InvestmentGuide.co.uk Other Bank and Building Society Accounts
BANK and BUILDING SOCIETY
(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 These are good value for short term savings starting with small amounts but the headline rate is usually dwarfed by low maximum amounts, so the actual interest gained in money terms is not particularly impressive.
Minimum £1 to £20 a month.
Maximum £100 to £2,000 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 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 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.
Where from Check rates on from: Moneyfacts.
Other Bank and
Building Society Accounts
If any of the direct links above at Where
from don't work, please let
us know so we can update them.
Last updated 1
August 2011