What is the minimum investment?
What is the maximum investment?
The maximum that can be invested in the share capital of the Society, including Development Share Bonds is £100,000. This limit is set by law. If at any time the total amount held by an individual Member in his/her share account and any Development Share Bonds together with any interest payable thereon exceeds the sum of £100,000 the Society will repay the excess above £100,000 to the Member.
Can I have a Development Share Bond without being a member of the Society?
No, and please note that you must be 16 years of age or older, to become a member of the Society.
Do I have to hold my total investment in 1 bond?
No, you can hold a number of Development Share Bonds of varying amounts as long as each Bond you hold is £500 or over.
How many years can I hold a Development Share Bond?
You can choose to have a Bond for either a 1, 2 or 3 year period
What are the Development Share Bond rates?
Development Share Bond rates are reviewed every month against other comparable financial products on the market and are therefore subject to change on a monthly basis. Rates will be made available on our website, or you can call the Membership Hotline on 0800 435902 for current rates.
Do Development Share Bond rates vary during the bond’s term?
No, Development Share Bond rates are fixed for the term you have chosen – either 1, 2 or 3 years.
When is Interest paid out?
Interest is paid out at the maturity date of the Development Share Bond. Interest is paid gross and is liable to tax. We do not issue tax deduction certificates.
Will I receive a statement each year?
No, but we will contact you when your Development Share Bond matures to let you know what steps you need to take and to send you the interest due.
What does AER mean?
AER stands for Annual Equivalent Rate. As all advertisements for savings products quote an AER, it allows you to compare what return you can expect from your investment more easily.
What does Gross mean?
Gross is the contractual rate of interest payable before the deduction of income tax.
How safe is my investment?
To find out about the Society’s financial position please view our most recent Annual Report and Accounts on the link below.
Please also note that the position you occupy as a shareholder of the Society is no different from that of a shareholder in any other corporate body in so far as, if the Society fails, you may not have all or any of your investment returned to you. Co-operative societies, unlike banks and building societies, are not subject to prudential supervision by the Financial Services Authority. Development Share Bonds are not covered by the Financial Compensation Scheme.
How much notice do I have to give for early termination of my Development Share Bond?
You do not need to give any notice for early termination of your Development Share Bond, once we have received your request; it will take up to 2 weeks for you to receive payment of the initial amount invested. All interest will be forfeited.
How do I terminate my Development Share Bond early?
You will need to confirm in writing a request to terminate a Development Share Bond early, and we will also need the Development Share Bond certificate. Requests should be sent to The Membership Department, The Midcounties Co-operative, Co-operative House, Warwick Technology Park, Warwick, CV34 6DA.
What would happen if I terminate my Development Share Bond before the end of its term?
All interest will be forfeited.
Can withdrawals be done mid-term on my Development Share Bond?
No, partial withdrawals are not allowed.
Can I add to my Development Share Bond during its term?
No, however you can invest in a new Development Share Bond at any time, or you can add additional funds to the same Development Share Bond upon its renewal, subject to the £100,000 maximum.
Can I transfer funds from my share account to a Development Share Bond?
Yes, there is an option on the Development Share Bond application form to do this, please send in your share account pass book with your application.
Can I transfer my Development Share Bond to someone else?
No, only upon death of the Development Share Bond holder would a transfer be allowed, and then his/her personal representative(s) will be the only person(s) recognised by the Society as having title to the Development Share Bond.
What happens if I die before the Development Share Bond matures?
Once all formalities are completed, we will pay interest on your Development Share Bond up until the date the payment is made to your estate’s personal representative.
What happens if I fail to respond to my renewal letter?
The Principal Amount and the interest payable on the Development Share Bond will be paid by transfer to the Member’s share account at the end of the Term unless an application for a new Development Share Bond is received by the Society prior to the end of the Term.
Can I have a Development Share Bond against my account in someone else’s name i.e. a grandchild?
No, the Development Share Bond can only be held in the same name and address as the membership account.
What happens at the end of the Bond term?
You will receive a renewal form prior to the maturity date. You can either:
- Redeem the Bond for full payment; or
- Receive the interest payment and reinvest the capital; or
- Invest additional funds on a further Bond.
How is the Development Share Bond investment paid back to me?
Upon the maturity date you can redeem your share bond by completing the renewal form option to receive full payment of capital and interest. This is paid back to the named bond holder by way of cheque and sent to the address held on the account at the time. Alternatively you may complete the BACS form included with your renewal letter for electronic bank payment. Bank transfer payments can be made to a joint account as long as the Development Share Bond holder is named on the joint account.
If I redeem my bond can I have the payment paid to someone else?
No, we can only make a payment to the named bond holder and it must be sent to the address held on the account at the time. Bank transfer payments can be made to a joint account as long as the Development Share Bond holder is named on the joint account.
How do I apply for a Development Share Bond?
Call our Share & Bond Team on 0800 093 7553 for an application form to be sent to you. We will need 2 forms of identification (see appendix A attached to the application form for accepted forms of identification) along with a cheque made payable to “The Midcounties Co-operative”. Alternatively you can transfer funds direct from your share account by completing the section on your application form and enclosing your share pass book.
Have we answered all of your questions?
No, please call Share & Bond Team on 0800 093 7553 – they will be pleased to help.