Our Reserve Account is an additional account which can be held alongside our Member Account meaning you will save into both accounts each month, allowing you to save for different purposes.
Interest Rates for the Reserve Account
| 1st – 31st March | 1st – 30th April | ||
| Gross* Rate | AER** Rate | Gross* Rate | AER** Rate |
| 2.0% | 2.0% | 2.5% | 2.5% |
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*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. |
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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.
| Interest rates | The interest rate is reviewed monthly and you will receive your interest payment on a quarterly basis. | |
| Can No1 CopperPot Credit Union change the interest rate? | Yes, the rate is variable and if the interest rate changes notification will be made via the website in advance. | |
| How can I save? | We offer payroll deduction and pension deduction with most UK police forces. If we do not offer payroll/pension deduction within your force you can save via Direct Debit. | |
| How do I manage my account? |
You can manage your account online, through our app, or by contacting us directly. | |
| How much can I save? | You can save up to a maximum of £500 per month into this account, and up to £1,000 per month across all of your Credit Union accounts. Each adult member can hold a total of £40,000 across all of our savings accounts. | |
| Can I make withdrawals? | Yes, there is no cost to withdraw your funds and you can do this on our website, app or by contacting us directly. 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. Withdrawal(s) and closure are available without notice, however this will affect your interest payment. | |
| Additional information | To keep this account active, you must pay regular amounts each month. We have the discretion to terminate your membership if regular payments into the Reserve Account are not maintained. | |
Reserve Account Terms and Conditions
- Regular savings must be made each month from payroll or by Direct Debit up to a maximum of £500 per month.
- 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 quarter 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.
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.
Eligible deposits with us 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).
