Our Reserve Account runs alongside our Member Account allowing you to have two separate savings pots. You will save into both each month and the Reserve Account will earn a monthly interest, allowing you to know the rate of return in advance.
Interest Rates for the Reserve Account
| 1st – 30th June 2024 | 1st – 31st July 2024 | 1st – 31st August 2024 | |||
| Gross* Rate | AER** Rate | Gross* Rate | AER** Rate | Gross* Rate | AER** Rate |
| 4.0% | 4.0% | 4.0% | 4.0% | 4.0% | 4.0% |
| *Gross % rate is the contractual rate of interest payable before the deduction of income tax at the rate specified by law, currently 20%. **AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. | |||||
Key Product Information
| Account name | Reserve Account |
| Can No1 CopperPot change the interest rate? | Yes, the rate is variable and if the interest rate changes notification will be made via the website in advance. |
| What would the estimated balance be after 12 months based on a monthly £50 deposit? | If the first deposit took place at the beginning of the Credit Union’s financial year, after 12 months a member would have a savings balance of £600, the interest paid would be £13.61, making a total of £613.61. This estimated balance is based on an interest rate of 4.0% AER, which is subject to change. This is provided for illustrative purposes only and does not consider any withdrawals or changes to savings contributions. |
| How do I open and manage my account? | To be eligible for a Reserve Account you must already hold a Member Account or Family Member Account. You can open and manage your account in person, online, through our app or by phone, and you can also use email to manage your account. You must save a minimum of £5 and can do this through payroll or pension deduction (available in most police forces) or by Direct Debit. We have the discretion to terminate your membership if regular payments into the account are not maintained. Each adult member can hold a maximum of £40,000 across all our savings’ accounts. |
| Can I withdraw money? | Yes, there is no cost to withdraw your funds. Withdrawals are sent via Faster Payment, which means the funds will be in your bank account instantly. However, it could take up to two hours. You can withdraw funds using our website, app, or by phone. |
| Additional information | Interest is paid gross but is not tax free and therefore should be declared on your tax return. The Personal Savings Allowance (PSA) means every basic-rate taxpayer can earn £1,000 interest without paying tax on it. Higher-rate taxpayers can earn £500 with no tax. Additional-rate taxpayers do not get an allowance and therefore must pay tax. Your savings may be subject to taxes which are not paid or imposed by No1 CopperPot. For more information, please visit https://www.gov.uk/apply-tax-free-interest-on-savings |
Statements are issued annually. This is done via an email with a link to the online members areas which provides access to all statements. Members without an email address will be issued a paper version via post. All members can request a paper version if that is their preferred method of receipt.
Reserve Account Terms and Conditions
- A minimum of £5 regular savings must be made each month from payroll or by Direct Debit.
- You will receive interest payments monthly.
- If you miss a payment into your Reserve Account we will contact you to remind you to contribute. If you do not start contributing as soon as possible we will close your Reserve Account and transfer your balance into your Member Account.
- If you close your Reserve Account interest will be paid at the end of the month into your Member Account. The amount of interest will be calculated on the day of closure.
- If you choose to leave the Credit Union no interest will be paid on your account.
- This account does not qualify for a dividend payment.
- A negative interest rate occurs when a central bank, in our case the Bank of England, reduces the nominal interest rate below zero percent in an effort to boost economic activity. This in turn results in a charge for banks to store reserves at the central bank rather than receiving positive interest income. If this was to occur the Reserve Account and ISA could go to negative interest rates.
- For more information please see our general terms and conditions.
Download key documents here:
| General Savings Terms Conditions |
| Reserve Account Terms and Conditions |
You’re covered with Life Protection
Life Protection is included with all our savings accounts and covers you up until your 65th birthday. This does not cost you anything, it is simply another benefit of saving with the Credit Union.
Your savings are protected up to a maximum of £40,000 per member. This means your savings could be doubled in the event of death, subject to our terms and conditions. It is also included with our borrowing products and covers you up until your 70th birthday. It protects up to a maximum borrowing of £40,000 per member, this means that your loan could be cleared, ensuring that your debt does not remain outstanding, subject to terms and conditions.
All benefits are paid at the discretion of our Board of Directors. Life Protection is not an insurance policy and is not guaranteed. For more information please click here.
Your savings are protected by the FSCS
Your eligible deposits with No1 CopperPot Credit Union are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme. For further information about the compensation provided by the FSCS, refer to the FSCS website at www.fscs.org.uk.
We are also covered by the Financial Ombudsman Service (FOS).
Open a Reserve Account
Number One Police Credit Union Limited trading as No1 CopperPot Credit Union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Firm Reference Number (FRN) is 213301. For details visit http://www.fca.org.uk.
