Personal savings questions that need answers?
We hope you’ll find the answer in these Frequently Asked Questions (FAQs).
What’s the AER?
AER stands for Annual Equivalent Rate. If you left one amount of money in your account all year, the AER would be the interest rate you’d get if we:
- Paid you the interest on the original amount within the year
- Added the interest onto the original amount in your account
- Then paid you interest on the new amount (that’s the original amount, plus the interest we added to your account) for the rest of the year.
But the AER is only relevant if you have an account that pays interest more than once a year. So it’s not relevant for our accounts as we only pay interest yearly – that’s why the AER is the same as the gross interest rate (see below) on our accounts.
We include the AER on all accounts so that you can compare our products with other banks’.
What’s ‘gross' interest?
The interest that you earn on money in your account before tax is taken out. (It doesn’t include added-in interest in the way that the AER does.)
What’s ‘net’ interest?
The interest, less tax at the basic rate (currently 20% for those who earn, roughly, between £10,035 and £42,475 in 2011/12). If you pay tax above the basic rate, then you will have to pay extra tax on the interest you earn.
What does the Financial Services Compensation Scheme (FSCS) do?
Shawbrook is a member of the FSCS, a scheme that protects customers’ deposits. For more about the scheme, and the limits of the protection, find out more at www.fscs.org.uk
What does the Financial Conduct Authority (FCA) do?
Shawbrook is regulated by the FCA. The FCA regulates many different kinds of financial services companies, and makes sure that banks treat their customers fairly. Find out more at www.fca.org.uk
Are my savings safe with you?
Shawbrook is an independent UK owned bank, is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The FCA & PRA regulate many different kinds of financial services companies, and make sure that banks treat their customers fairly. Find out more at www.fca.org.uk or www.bankofengland.co.uk/pra. Shawbrook is a member of the Financial Services Compensation Scheme (FSCS), a scheme that protects customers’ deposits. For more information about the scheme, and the limits of the protection, visit www.fscs.org.uk. We have been looking after customers’ deposits for over 40 years.
Can anyone open a savings account?
Our personal savings accounts are open to any individual who is permanently resident in the UK and aged 18 or over.
What do I have to do to open a savings account?
- Click on the ‘open an account’ button on any of our product pages and you can fill in a form there and then.
- Download an application form from any product page (look for the envelope icon), fill it in and post it to us along with a cheque for your opening deposit.
- Call us on 0845 266 6611 and provide us with your name and address and we will forward an account opening pack to you by post for completion and return.
Can I open more than one savings account?
Yes you can open as many accounts as you want, subject to any individual deposit limit referred to in the Key Product Features of each of our products, and an overall deposit limit of £1 million per customer.
What checks do you do before I can open a savings account?
We check your address and identity before you open an account with us. We do this by checking electronic databases. In the event that we are unable to complete our checks in this way, we will ask you to supply us with some identity documents by post.
Can I receive gross interest on my savings account?
You can if you are a non-tax payer and submit HMRC form R85 to us, this is available at http://www.hmrc.gov.uk/forms/r85.pdf.
Certain Fixed Term deposits are classified as Qualifying Time Deposit (QTD) where interest is paid gross regardless of your tax status. Please refer to the appropriate Key Product Features for details.
How can I make my first deposit?
You can send us a personal cheque drawn on a bank or building society account which you are a party to. This can accompany your account-opening form. Cheques should be made payable to either the proposed account holder(s) or to Shawbrook Bank (and quote either your account number or address on the reverse).
If you open an account online we send you a letter that gives you our Sort Code and your account number. When you get that letter you know that your account is open and ready for you to make your first deposit.
You can make an online transfer, or instruct your bank or building society to send funds to us by BACS (credits your account on day 3), Faster Payment (credits your account the same day) or CHAPS (credits your account same day).
Can I change my mind about opening a savings account?
If you have applied for a savings account other than a Fixed Term account or bond, then you can cancel your account by writing to us within fourteen days of opening the account.
How do I pay extra money into my account?
You can pay funds in by cheque, BACS, CHAPS or Faster Payments using the Sort Code and Account Number which will be provided in your Welcome letter.
If I have more than £85,000 in an account, does that mean I will lose money?
A depositor whose total deposits with a failed bank exceed the compensation limit will receive compensation for the amount of their deposit up to the limit of £85,000.
Depositors with deposits above the limit may also receive additional funds in the form of a share of their savings following any distribution of assets as part of the insolvency process for their firm. How much they receive depends on the rate of recoveries (also known as the dividend rate) in the liquidation of the company.
The liquidation process can take a long time to complete. Depositors will have to wait until the liquidator has completed the process to find out how much more they might receive in total. There is no certainty that they will receive any further payments. This process is separate from the FSCS compensation process.
How do I give you notice when I want to take money out of a notice account?
Please write to us and ask us to place part or all of your funds on notice, and tell us how you would like the funds returned to you at the end of the notice period. We will send you a cheque when you want to take money out, or transfer funds to another bank account by BACS. A same day CHAPS payment can be made for an additional charge.
What happens at the end of the fixed-deposit term (often called maturity)?
At maturity, you can either withdraw your funds or transfer them into a new Shawbrook account of your choice. If you do not let us know what you wish to do by the maturity date, we will move it into an instant access account for you and confirm the interest rate in writing.
How do I get you to change my personal details?
You can contact us by post, telephone or email to provide us with any changes to your details, or for any information about your savings. Our focus on customer service means that you will very often speak to the same person on the Savings Team who will be able to help you.
Will your savings rates stay competitive?
We will consistently seek to offer good rates and excellent service to all of our customers, now and in the future.
Are there any hidden savings account charges?
The only charge we make is in the event that you wish to have your fund returned by a same day CHAPS payment to your bank account upon maturity or at the end of a notice period.
How often do you pay interest?
This will vary according to the product you have chosen. The frequency of interest payment can always be found on the Key Product Features.
When do I get statements?
Normally annually, and in the case of a fixed term deposit, at the maturity of the deposit. Please refer to the Key Product Features for your chosen product.
Can I put more money into my fixed-term deposit account?
This will vary according to the Fixed Term product you have chosen. Please see the Key Product Features for the individual product concerned.
Can I put more money into my notice account?
You can put more money into your account while the product is available.
Is there a limit to how much I can take out of a savings account?
Any withdrawal limitations or restrictions are referred to in the Key Product Features. Fixed Term Deposit accounts do not offer withdrawals prior to the end of the term.
When do I start earning interest?
Cheques deposited will earn interest from the second working day after the day of receipt, so a cheque received and banked by us on Monday starts earning interest from Wednesday. BACS, CHAPS and Faster Payments credits earn interest from the day of receipt.
What do I do if I’ve forgotten my memorable word or want to change it?
Please call us on 0845 266 6611 to let us know. We will identify you by other means and ask you to provide us with a new memorable word.