When you become a member you will hold one £1 share in the Society. This will be held in a share account registered in your name. As a member your details are recorded on the Register of Members, in accordance with our Rules.
As a member you can invest in the Society up to a maximum of £100,000. You can invest in one of two ways – by increasing the number of shares you hold in your share account, or by investing in Development Share Bonds.
Share accounts – increasing the number of shares you hold and making withdrawals
All members must hold one £1 share in the Society. You can increase the number of shares you hold in your share account by investing funds. You can do that in the following ways:
- By cheque (Posted with share account passbook to Share Ledger team at our head office).
By completing this form and sending it to the membership team.
- By electronic bank transfer. A guidance document can be downloaded here.
- By standing order. A standing order form can be downloaded here.
When you increase your share account beyond the minimum one £1 share, we will issue you with a share account passbook. For security reasons, we will always require your share account passbook to be forwarded to us with all transaction requests so it can be updated and returned to you. Passbooks are always returned to the address we hold for you on our system.
If you receive a share of the profits in the form of an e-voucher and do not spend it, your share account will also increase. We won’t issue you with a share account passbook where this happens but you can request one.
You can withdraw from your share account in the following ways:
- By completing the cheque withdrawal form.
- Electronic bank transfer BACS. You will receive the funds in your bank account 3-5 working days after the processing date. A BACS form can be downloaded here.
- Electronic bank transfer CHAPS. You will receive the funds in your bank account on the same working day. There is a charge of £15 made for this service, which will be taken from your share account balance. A CHAPS form can be downloaded here.
When you withdraw funds, we will make the payment to you. We are unable to make any payments to a third party. When you make investments, we are unable to accept cash payments. Similarly, we are unable to pay cash when you withdraw funds.
Please note, in accordance with the Society's Rules, the Board has the power to restrict the level of withdrawals from the Society at any time.
Share accounts – interest and closing your account
A member’s share account earns interest on balances over £10. Interest is calculated on the daily balance of each member's share account at the close of business each day. Interest on any payments made by cheque does not accrue until the fourth working day following payment. Any interest is credited to the member's account once a year in January. Interest is paid gross with the member being liable for income tax, where applicable.
Interest rates will be determined by the Board from time to time in line with market conditions.
Up to and including 31 August 2021, the rates of interest are:
- No interest is paid on share account balances up to £10.
- 1% p.a. for share account balances up to £200 (including the first £10)
- 2% p.a. for share account balances over £200 up to the maximum holding of £100,000 (including the first £200).
From 1 September 2021, the rates of interest are:
- No interest is paid on share account balances up to £10.
- 1% p.a. for share account balances up to £200 (including the first £10)
- 1.5% p.a. for share account balances over £200 up to the maximum holding of £100,000 (including the first £200).
Interest rates are subject to change. Such changes in interest rates will be stated in these terms and conditions and publicised by notices in the Society's branches.
You can close your share account by writing to the Share & Bond Team at our head office. You must send your share account book with the closure request. We will make a payment of the closing balance including interest to the share account holder by cheque or BACS.
A share account with a share balance of £2 or less can be closed over the phone by calling 0800 093 7553. When it is closed, the share investment will be donated to a charity of the Society’s choice. Different procedures apply for archived share accounts. Please call 0800 093 7553 for more information.
Development Share Bonds
As a member you can invest in the Society to help us grow by purchasing Development Share Bonds. The minimum investment value of a Development Share Bond is £500 and the maximum is £99,999. You can invest for periods of either 1, 2 or 3 years. When you invest in a Development Share Bond the Society will pay you interest on your investment at an agreed rate.
More details of how Development Share Bonds work and their terms and conditions can be found here.
Code of Practice
The Society follows a Code of Practice which applies to shares and Development Share Bonds in the Society. The Code of Practice can be found here.
Code of Practice
The Society follows a Code of Practice which applies to shares and Development Share Bonds in the Society. The Code of Practice can be found Appendix 2.
In accordance with the Code of Practice, the Society is obliged to provide the following statement to members of the nature of their financial interest in the Society and any change affecting it. You should consider these points carefully before deciding to invest in the Society’s shares or Development Share Bonds.
- 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 in the Society. Hence the Society’s shares 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 and these are set out in Appendix 2. For example, WSC held in your share account may receive 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 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 at any time unless the Society’s board of directors has removed this facility under the Society’s rules.
- The Financial Ombudsman Service does not apply to your share account or your relationship with the Society but under the Society’s rules any dispute may be the subject of arbitration by an arbitrator agreed between 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 of Practice please address them to the Secretary:
- by email: edward.parker@midcounties.coop
- by post: The Secretary, The Midcounties Co-operative Limited, Co-operative House, Warwick Technology Park, Warwick, CV34 6DA