If you have £50,000 or more to save, the C&G Reserve Account could be exactly what you’re looking for. It offers a great return and, what’s more, you don’t need to give notice if you want to make a withdrawal.
The gross interest rate you'll receive is guaranteed to be no lower than 0.25% below the Bank of England’s base rate until 31 January 2009. What’s more, to welcome you to your account, we’ll give you a special bonus of 0.85% for the first six months. Also, the first three withdrawals you make each year are completely free of charge. After that, there’s a charge equivalent to 45 days’ gross interest on the amount withdrawn.
To open an account, visit any C&G branch. You can also do it by post: call us on 0845 602 0022* and we'll send you an application form.
| Annual interest | Gross % iii | AER % i | Net % ii |
|---|---|---|---|
| With bonus | |||
| £50,000+ | 5.10 | 4.67^ | 4.08 |
| £100 - £49,999* | 0.50 | 0.50 | 0.40 |
| Without bonus | |||
|---|---|---|---|
| £50,000+ | 4.25 | 4.25 | 3.40 |
| £100 - £49,999* | 0.50 | 0.50 | 0.40 |
| Monthly interest | Gross % iii | AER % i | Net % ii |
|---|---|---|---|
| With bonus | |||
| £50,000+ | 4.98 | 4.67^ | 3.98 |
| £100 - £49,999* | 0.49 | 0.50 | 0.39 |
| Without bonus | |||
|---|---|---|---|
| £50,000+ | 4.16 | 4.25 | 3.33 |
| £100 - £49,999 | 0.49 | 0.50 | 0.39 |
Annual interest rates shown above 'with bonus' include a 0.85% bonus for the first six months.
Interest rates effective from 01/11/08
i AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
ii Net interest is paid or credited after deduction of income tax at the lower rate of 20%.
iii Gross interest is the rate payable before the deduction of income tax and can only be paid or credited subject to the required certification. Interest cannot be paid gross to individuals not ordinarily resident in the UK for tax purposes. Individuals whose income falls within the basic rate band will have no more tax to pay on their interest. Individuals who are higher rate taxpayers will have to pay the extra tax due on their interest (the difference between tax deducted at 20% and the higher rate of 40%).
^ The AER for the C&G Reserve Account reflects the 6 month bonus payable following account opening.
* Interest rates for this tier are the default rates paid when the account balance falls below the minimum stated balance.
The C&G Reserve account rate is variable and we may change the rates on this account at any time (subject to the guarantee). If we change the rate, we will tell you using at least one of the ways set out in your account's conditions. Where under the terms of an account, a change in the Bank of England base rate requires us to change the interest rate, we will always make the change within 30 days of a change to the base rate.
Rate changes to a C&G account or to other generally available accounts can affect an account's relative competitiveness and we do not promise that our rates will be better than those available elsewhere. If your balance falls below the minimum shown in the tables, please refer to the conditions of that account or ask for details.
Products and rates can change frequently and without notice, therefore please reload the page if viewing offline or through stored information on your computer.
| Account name: C&G Reserve Account | |
|---|---|
| Interest rates (AERs) | Interest rates vary. Please view our Key Benefits, or ask for the C&G Savings Accounts & Rates booklet for full details of the current interest rates and AERs we are paying on this account. We guarantee that the gross annual interest rate we pay on this account will be no lower than 0.25% below the Bank of England base rate until 31 January 2009. |
| Tax status | Net or Gross If you pay income tax we will pay you interest after deducting income tax at the applicable rate, currently 20% i.e. Net. If you are a higher rate taxpayer, you will have to pay the extra due on your interest (the difference between tax deducted at 20% and the higher rate of 40%). If you are a non-taxpayer, we can pay you interest without any deduction for income tax i.e. Gross. You will first need to complete HM Revenue & Customs form R85. |
| Conditions for bonus payment | We will pay a 0.85% interest rate bonus for the first six months that the account is open. We do not pay a bonus during any period when the balance is below the £50,000 minimum opening balance. |
| Withdrawal arrangements | You can make withdrawals via the C&G Telephone Transaction Service. We pay the money into your nominated bank account by electronic transfer. You do not have to give any notice of withdrawals. The first three withdrawals each year are free. After that, there is a charge equivalent to 45 days’ gross interest on the amount withdrawn. |
| Access | You can make additions by telephone, post or at any C&G branch. You can make withdrawals by telephone. |
The following important information for the C&G Reserve Account product should be read in conjunction with the C&G savings handbook.
The C&G Reserve Account is guaranteed to pay an annual interest rate which will be no lower than 0.25% below the Bank of England base rate until 31 January 2009. On top of this, we'll also pay you a bonus of 0.85% for the first six months after you open your account.
If, as a result of an increase in the Bank of England base rate, the interest rate paid on the account becomes lower than 0.25% below it, then we'll increase the interest rate on the account within 30 days of the change to the base rate.
Interest can be paid annually or monthly:
The interest rate for monthly interest is slightly lower than the annual rate. This is because monthly interest is paid more frequently. This also applies to the bonus rate on this account. However, we will ensure that the Annual Equivalent Rate (AER), which illustrates what the interest rate would be if the interest was added to your account once each year, is always the same for both the annual and monthly rate (both with and without the bonus).
The same thing applies to the guarantee on this account. The guarantee that the interest rate will not be lower than 0.25% below the Bank of England base rate applies to annual interest. If you choose to receive monthly interest, the guarantee will be slightly lower. But by maintaining the same AER for the annual and monthly rates, the guarantees will be equivalent whichever interest option you choose.
At any C&G branch
By post (cheque only)
By phone
Minimum addition - no minimum
Maximum addition - £1,000 cash a day (the maximum you can save in all C&G savings accounts in total is £3 million)
You'll need to set up a Direct Debit to add to your account by phone - it will take around 14 days for your Direct Debit to be set up. You can complete a Direct Debit instruction at the same time you open your C&G Reserve Account.
All withdrawals are made by phone. We transfer the money electronically from your C&G Reserve Account to your nominated bank/building society account.
Minimum withdrawal - no minimum
Maximum withdrawal - total cleared balance
You can make up to three free withdrawals per year. For this purpose, a year runs from the anniversary date of when you opened your account. Further withdrawals are subject to a charge equivalent to 45 days' gross interest on the amount withdrawn (which will be deducted from your account balance).
A C&G Reserve Account can be just in your name or it can be a joint account with one other person, but you must be saving as individuals (not on behalf of a company, club, charity, trust etc) and your permanent home must be in the UK. You must also be over 18. You can only hold one C&G Reserve Account at any time, whether it's in your sole name or joint names.
If you close your C&G Reserve Account you will be unable to open another C&G Reserve Account for six months.
Saving at a branch - click here
Saving by post - click here
ID requirements - click here
Telephone Transaction Service - click here
The Clearing Cycle - click here
The Banking Code - click here
Direct Debit Guarantee - click here
What if I change my mind? - click here
Closing an account - click here
Dormant accounts - click here
C&G Savings is a division of Lloyds TSB Bank plc.
Lloyds TSB Bank plc is authorised and regulated by the Financial Services Authority (FSA). Our FSA register number is 119278. You can check the FSA's register by visiting their website or by contacting them on 0845 606 1234. Lloyds TSB Bank plc is registered in England and Wales No.2065. Registered Office: 25 Gresham Street, London, EC2V 7HN.
*We may monitor and/or record telephone calls in case there's a need to check that your instructions have been carried out correctly and to help improve our service quality.
