Charity Saver

Frequently Asked Questions

• How do I open a Charity Saver account?

  You can open a Charity Saver account with a monthly investment of a minimum of £10 up to a maximum of £500 in the first 12 months. Thereafter there are no limits on monthly subscriptions to the account. Regular monthly payments must be made by Standing Order. To open an account simply complete an application form and post it to us together with a cheque made payable to ‘Teachers Building Society a/c (your name)’ equal to the amount you wish to save each month.

  Once the account has been opened we will write to you to confirm receipt of your funds and send you a Standing Order Form with the Society’s bank account details and appropriate reference number. The Standing Order should be set up for any day of the following month direct with your bank. When opening an account we are required by law to verify the names and addresses of new customers. We will make searches electronically and verify names and addresses by using a credit reference agency. However, we may ask you to provide physical forms of identification if the information provided by a credit reference agency is insufficient. Full details of these requirements are quoted on the application form under the section headed ‘Your Information’.

  A Charity Saver account can be opened in single or joint names. In the case of a joint account, only one standing order can be operated. Maximum investment per account in the first 12 months is £6,000 with lump sum payments not permitted. There are no limits on maximum annual investment after this period.

• When will interest be paid?

  Money paid into your account by electronic transfer will earn interest from the day we receive it and amounts paid in by cheque will earn interest from the day after receipt. Interest rates are variable and, when a change occurs, you will be advised of the new rate. The interest rate which currently applies to this account can be found in the leaflet 'Current Rates on Open Schemes' and on the Society's website. Interest is paid annually on 31 December and will be added to your Charity Saver account.

• Can I receive interest tax free?

  Under current legislation, income tax will normally be deducted from your interest at the appropriate rate. Tax treatment depends on your individual circumstances and may be subject to change in the future. If you, or one of the other parties to the Account are non-tax payers the Society will provide, on request, an HM Revenue & Customs Form R85 to enable gross interest to be paid to the non-tax paying party. Account holders should record the amount of interest paid in respect of the Account, as this information may be required by HM Revenue & Customs.

• Can I make withdrawals?

  Yes, you can make one withdrawal in the first 12 months from account opening without notice, loss of interest or charge. Four withdrawals per calendar year are permitted thereafter. If you make more than one withdrawal in the first 12 months or more than four withdrawals in a calendar year thereafter the interest rate payable for the remainder of the year will be reduced to the equivalent of the Society’s Extra Ordinary Account rate. This change will take effect on 1st of the month following the withdrawal.

• How do I make withdrawals?

  Charity Saver is designed for investors who wish to operate an account by telephone. When you wish to make a withdrawal all you need to do is call us free on 0800 783 2367 and we will transfer the money to your nominated bank account by the Faster Payments Service. Please note a cheque withdrawal service is not available with this account.

  All withdrawals will be processed on the day of receipt where the request is received by the Society before 3.30pm on a working day (not being a Saturday, Sunday or a Bank Holiday). Please see our Special Terms & Conditions for Accounts Operated by Telephone for full details of this service.

• How long do you need to wait for a cheque to clear?

  The central clearing cycle for cheques (and automated payments, including those over the telephone or internet) is 3 working days. Withdrawals may be made against a cheque on the 6th working day after it has been paid in. Please note this applies to the initial opening balance.

• What documentation will I receive?

  The terms and conditions which apply to our savings accounts are set out in the Savings Accounts - General Terms and Conditions. Special conditions may apply to particular types of accounts and you will find these in the booklets or sheets dealing with those accounts. When the account is opened, a receipt will be forwarded. You will also receive a paying-in slip for future savings. While your money is invested with us, we will send you an annual statement for each period ending 31 December shortly after the end of each year. The statement details all transactions that have taken place that year, and any interest earned.

• What do you mean by gross, net and AER rate?

  The gross rate is the contractual rate of interest payable before deduction of income tax at the rate specified by law (the "specified rate"). The net rate is the rate which would be payable after allowing for deduction of income tax at the specified rate from the gross rate. The Annual Equivalent Rate (AER) illustrates what the interest rate would be if interest was paid and compounded once each year.

• Will I receive a windfall payment if you convert?

  The Society requires new customers to agree to assign to charity any windfall benefit to which they might become entitled on any conversion or takeover. The application form and the General Terms and Conditions give further details. Existing shareholding members as at 31 March 2000 who have continuously held a share account will not be required to assign any benefits to charity upon opening a new account. The Society has chosen the Charities Aid Foundation as the charity to benefit from any potential windfalls.

• What happens if I change my mind?

  If you are not happy with your new account, you can switch to another type within 14 days, or have your money returned with interest. See our General Terms and Conditions for further details.

• If I close my account, can I open another one in the future?

  You can close your account by calling us on  0800 783 2367. If you close the account for any reason, you will not be able to open a new Charity Saver account for 12 months.

• Is the Society a participant of the Financial Services Compensation Scheme?

  Yes, the Society is a participant in the Financial Services Compensation Scheme established under the Financial Services and Markets Act 2000. Payments under the Scheme are limited to a maximum of £85,000 per person. Most investors are covered, including individuals and small firms. A small number of categories of shares and deposits are not covered. Although most shares and deposits are denominated in sterling, all other currencies are covered. Further details are available on request from the Society.