Prime Account

• Flexible saving – save regularly or pay in lump sums
• Withdraw funds whenever you wish
• Interest-bearing account – current rate 1.5% AER* (variable)
• Interest paid monthly on or around the 25th day of each month
• Manage your Prime Account online

*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

• Exclusive to Penny Post members, the Prime Account runs alongside a member’s Regular Shares Account, and does not replace it.
• Maximum savings in a Prime Account is £10,000
• Like all Penny Post saving accounts, members’ money is protected by the Financial Services Compensation Scheme (FSCS) currently to the value of £85,000. For more information visit the FSCS website.

• Open to members with a Regular Shares account.
• Members must continue to save at least £2 weekly or £10 monthly in their Regular Shares account whilst saving in a Prime Account.
• Interest is credited directly to the Prime Account, on or around the 25th day of each month.
• The interest rate is variable.
• Maximum savings in a Prime Account is £10,000. Any amount above £10,000 will be transferred to the member’s Regular Shares account.
• Savings in the Prime Account cannot be used as security against a loan.
• The total balance in all your Penny Post saving accounts cannot exceed £50,000.
• An Annual Dividend is not paid on the Prime Account.
• Other terms and conditions may apply.

Interest from savings will be paid gross, which means tax will not automatically be deducted. UK tax payers may be liable for tax on this account.

Since April 2016, savers have been able to grow their money tax free, thanks to the Personal Savings Allowance (PSA). The PSA allows you to earn up to £1,000 interest tax-free if you’re a basic-rate (20%) taxpayer, or £500 if you’re a higher-rate (40%) taxpayer. Additional-rate taxpayers don’t receive a personal savings allowance, so if you earn more than £150,000 each year, you’ll need to pay tax on all your savings. For more information, please refer to the Government website.