Common enquiries
Who can invest?
When does the Balanced Savings Plan start and mature?
How is my account opened?
Will my Balanced Savings Plan be treated as two accounts?
Will I be able to take money out of the Balanced Savings Plan?
Will my money be invested ethically?
How is my interest paid on the Fixed Term Deposit?
How is interest paid on the Guaranteed Savings Bond (Issue 27)?
What if I die before the Balanced Savings Plan matures?
What happens when my Balanced Savings Plan matures?
What if I change my mind?
Who can invest?
Any UK residents over the age of 16 can invest. Joint applications are also welcome.
When does the Balanced Savings Plan start and mature?
You can apply for a Balanced Savings Plan between
28th April and 27th June 2008. Please note that this offer is subject to availability and we can withdraw this offer at any time before the stated end date. Once your cheque/funds have cleared, around three to four working days after we receive your application, the Fixed Term Deposit will start. One year later your Fixed Term Deposit will mature (we will write to you to confirm this date when the account is opened) and you will then have access to that part of your capital. The Guaranteed Savings Bond (Issue 27) will start on 11th July 2008 and matures on 11th July 2013.
How is my account opened?
Whilst you only need one cheque and one application form, the Balanced Savings Plan is actually made up of two accounts – a Fixed Term Deposit and a Guaranteed Savings Bond (Issue 27).
Will my Balanced Savings Plan be treated as two accounts?
Yes, you will receive two sets of account details, one for Fixed Term Deposit and one for Guaranteed Savings Bond (Issue 27), and therefore a total of two credit checks will be run (against each applicant for joint accounts) and may be recorded.
Will I be able to take money out of the Balanced Savings Plan?
No, the Fixed Term Deposit must be held for one year and the Guaranteed Savings Bond (Issue 27) for five years, so ensure that you will not need access to this money – even in an emergency.
Will my money be invested ethically?
Yes. As with other savings accounts from The Co-operative Bank, your money will be held on deposit at the Bank and then invested according to the principles stated in the Bank's Ethical Policy.
How is my interest paid on the Fixed Term Deposit?
6.25% gross/AER is paid on one half of your total capital, one year after your cheque/funds have cleared. See how your interest is calculated.
How is interest paid on the Guaranteed Savings Bond (Issue 27)?
After the five year term, you will receive one half of your total original capital plus any interest calculated.
On the basis of 80%
of any average rise in the FTSE 100 Index over the five-year term. Higher rate taxpayers will have an additional liability on the interest paid charged at the difference between higher rate and tax withheld. See how your interest is calculated.
What if I die before the Balanced Savings Plan matures?
If you’re a sole account holder, it may be either transferred to a person nominated by your representative in accordance with your will (or distributed in accordance with intestacy rules), or closed by your representative and your original investment repaid. If a joint account holder dies, it will be transferred into the name of the surviving account holder. If the Fixed Term Deposit has already matured this will only be applicable to the Guaranteed Savings Bond (Issue 27).
What happens when my Balanced Savings Plan matures?
When your Fixed Term Deposit is about to mature we will write to you a month beforehand. You could decide to put some or all of your lump sum away and make your money grow even more or you could request a cheque or transfer for withdrawal. If you don't want to decide straightaway we'll take care of your money by transferring it into a Co-operative Bank interest bearing account automatically. The same procedure applies when the Guaranteed Savings Bond (Issue 27) matures.
What if I change my mind?
You have 14-day cooling off period from when your plan is opened. On cancellation your total investment will be returned. If you wish to cancel, please write to us at Customer Services, The Co-operative Bank p.l.c., PO Box 200, Skelmersdale, WN8 6NY.
If you feel that you may need to hold or your money before the end of the 5 years, this plan is not for you.
