Thanks to the commitment of our members and the hard work of our colleagues The Midcounties Co-operative continues to progress.
We want to continue this success and develop your Society. To do this we must invest to grow. You can help us achieve this by purchasing Midcounties Development Share Bonds.
|Investment value minimum £500 up to £99,999|
- Interest is paid at the end of the term
- The rates shown are from 1st May 2020 and may be subject to change thereafter.
For more information, please refer to the Development Share Bond Terms & Conditions and Code of Practice below.
If you have any questions regarding Development Share Bonds please read the ‘Frequently Asked Questions’ section below before calling the Share & Bond Team on 0800 093 7553
Terms & Conditions
- The Society agrees to pay gross interest on the Principal Amount at the Interest Rate for the Term in consideration for the Member’s agreement not to request withdrawal of the Development Share Bond or part there of during the Term.
- Interest is paid on the Development Share Bond at the end of the Term. Interest is paid gross and is liable to tax.
- Interest shall be forfeited on early termination of all or part of a Development Share Bond.
- The minimum amount a Member can invest in a Development Share Bond is £500. The maximum a Member can invest in their share account, share bonds and Development Share Bonds held with the Society is limited by law to £100,000.
- The Member will be regarded as exclusively entitled to the benefit of a Development Share Bond. No notice of any trust shall be entered into the register against the title of the Member, and the Society shall not be affected by notice of any right title or claim of any person to this Development Share Bond other than the Member.
- Development Share Bonds are not transferable.
- On the death of the Member his/her personal representative(s) shall be the only person(s) recognised by the Society as having title to this Development Share Bond.
- Any person entitled to this Development Share Bond by operation of law may be registered as the holder thereof upon such evidence being produced as the Society may reasonably require and in accordance with the Rules of the Society.
- Development Share Bonds form part of the share capital of the Society.
- The Society shall be entitled to terminate this Development Share Bond at any time on the expiry of 30 days notice given in writing to the Member. On such early termination the Principal Amount together with interest calculated at the AER at the Date of Issue, will be transferred to the Member’s share account.
- A notice sent by post to the Member at his/her last known address shall be deemed to have been duly served upon the Member at the expiration of 48 hours from the time of posting. Notices to the Society shall be served upon it at its registered office.
- Changes to these Terms and Conditions can only be made on 30 days notice provided by the Society. Changes will be publicised by notice displayed in the Society’s registered office and all other places of business of the Society to which members have access and by such other means as the Board shall determine from time to time.
- The Society reserves the right to decline an application for a Development Share Bond at its sole discretion and without further explanation.
- The position the holder of a Development Share Bond occupies as a shareholder in the Society is no different from that of a shareholder in any other corporate body in so far as, if the Society fails, the holder may not have all or any of their investment returned to them. Co-operative societies, unlike banks and building societies, are not subject to prudential supervision by the Financial Services Authority.
Information regarding Development Share Bonds and a copy of the Code may be obtained from:
The Share & Bond Team
Warwick Technology Park
Free Phone telephone : 0800 093 7553
Code of Practice
Before you commit to purchasing shares/a Development Share Bond please note that The Midcounties Co-operative Limited (‘the Society’) complies with the Code of Best Practice developed by Co-operatives UK with the agreement of HM Treasury. The Code sets out the minimum standards of good practice that a consumer retail co-operative society should observe in its use of Withdrawable Share Capital. In this context, it is concerned with shares/Development Share Bonds given these are withdrawable but not transferable. The Code obliges the Society to provide a statement to its members of the nature of their financial interest in the Society and any change affecting it, as set out below. The Code itself can be found here.
- As a member of the Society, you are the owner of one or more shares in the Society. If the Society is unable to meet its debts and other liabilities, you risk losing the amount you hold in shares/Development Share Bonds in the Society. Hence they are known as risk capital. This may make it inappropriate for you as a place to keep your savings.
- Owning Withdrawable Share Capital (‘WSC’) is not the same as investing in the shares of a company. It is primarily for the purpose of supporting the Society in furthering its purpose and objects. There are various important differences between WSC and company shares. For example, WSC held in shares/Development Share Bonds receives interest but will not increase in value.
- The Financial Services Compensation Scheme, which covers bank, building society and credit union accounts, does not apply to your Share Account/Development Share Bonds with the Society, so you cannot claim compensation under the Scheme in the event of the Society not being able to meet requests for withdrawal of shares. This is because the Society does not require authorisation under the Financial Services and Markets Act 2000 to operate WSC. Societies are therefore not subject to supervision either by the Prudential Regulation Authority or by the Financial Conduct Authority in relation to WSC.
- You may withdraw money from your Share Account or from your Development Share Bond at any time unless the Society’s board of directors has removed this facility under the Society’s rules. Note that interest is not payable on early withdrawal of Development Share Bonds.
- The Financial Ombudsman Service does not apply to your Share Account/Development Share Bond or your relationship with the Society but under the Society’s rules any dispute is to be submitted to an arbitrator agreed by the parties or in the absence of agreement to be nominated by the Chief Executive of Co-operatives UK Limited. The arbitrator’s decision will be binding and conclusive on all parties.
If you have any questions regarding the Code please address them to The Secretary, The Midcounties Co-operative Limited, Co-operative House, Warwick Technology Park, Warwick CV34 6DA.
Frequently Asked Questions
What is the maximum investment?
Can I have a Development Share Bond without being a member of the Society?
Do I have to hold my total investment in 1 bond?
How many years can I hold a Development Share Bond?
What are the Development Share Bond rates?
Do Development Share Bond rates vary during the bond’s term?
When is Interest paid out?
Will I receive a statement each year?
What does AER mean?
What does Gross mean?
How safe is my investment?
How much notice do I have to give for early termination of my Development Share Bond?
How do I terminate my Development Share Bond early?
What would happen if I terminate my Development Share Bond before the end of its term?
Can withdrawals be done mid-term on my Development Share Bond?
Can I add to my Development Share Bond during its term?
Can I transfer funds from my share account to a Development Share Bond?
Can I transfer my Development Share Bond to someone else?
What happens if I die before the Development Share Bond matures?
What happens if I fail to respond to my renewal letter?
Can I have a Development Share Bond against my account in someone else’s name i.e. a grandchild?
What happens at the end of the Bond term?
How is the Development Share Bond investment paid back to me?
If I redeem my bond can I have the payment paid to someone else?
How do I apply for a Development Share Bond?
Have we answered all of your questions?