Charter Savings Bank

Charter Savings Bank is a UK savings bank that sells its accounts online and by post rather than through branches. Its range covers two things: savings accounts, currently easy access and fixed rate bonds, and Cash ISAs, which come as fixed rate, notice and easy access versions¹. It does not offer current accounts, credit cards, loans or insurance, so it is a place to hold savings rather than to run day to day money.

The bank is a trading name of Charter Court Financial Services Limited, a UK bank authorised to accept deposits, and part of OSB Group⁴. Money held with it counts towards one FSCS deposit protection limit of £120,000 per person, shared with the same firm's other brands, including Precise Mortgages⁶. The sections below explain each product type, how withdrawals and transfers work, who can open an account, what happens at maturity, and where to get help if something goes wrong.

Cash ISAs: fixed rate, notice and easy access

Charter Savings Bank offers only Cash ISAs in the ISA category, not stocks and shares ISAs or other ISA types². Within Cash ISAs it sells three kinds, which behave differently:

• Fixed Rate Cash ISAs pay a rate fixed for a set term. They are described as limited edition accounts which may be withdrawn from sale at any time without notice, so a particular issue can disappear from the market quickly¹. Withdrawals during the term are subject to a charge by way of loss of interest, the amount depending on the term².
• Notice Cash ISAs require you to give a number of days' notice before accessing the funds; taking the money without notice incurs a charge by way of loss of interest².
• Easy Access Cash ISAs let you withdraw at any time through the online banking service, transferring funds to your nominated account or another Charter Savings Bank account you hold¹.

A distinctive feature is the Mix & Match ISA, a Cash ISA platform that allows you to hold more than one product within your Cash ISA. However many Cash ISAs you hold with the bank, they all sit within one ISA wrapper and count as one Cash ISA for the annual allowance and HMRC reporting⁷. Interest on a fixed rate ISA can be paid into the ISA itself, into another Charter Savings Bank account you hold, or into your nominated account¹.

For background on how these types compare across the market, see the site's guide to ISAs. Variable rate Cash ISAs, typically easy or instant access, pay a variable rate the provider can change at any time⁸, and Cash ISAs generally come in easy access, notice, fixed rate and other forms across providers⁹.

Savings accounts: Easy Access and Fixed Rate Bonds

Outside the ISA range, Charter Savings Bank sells easy access accounts and fixed rate bonds. The Easy Access account can be applied for through the bank's website and managed online, with withdrawals made at any time by transferring funds to your nominated account or another Charter Savings Bank account you hold, subject to the conditions of the account you choose³. Fixed rate bonds lock money away for a set term in exchange for a fixed rate; the bank's own figures for current rates and terms are on its website, and this site carries no product rates. For how fixed rate bonds work in general, see savings accounts and MoneyHelper's explanation of cash savings bonds⁶.

Two rules shape how every Charter Savings Bank account operates. First, all payments to and from the account must go through a nominated account: a UK bank or building society account in your name that you provide when applying. Money can only be transferred from, or sent to, your Charter Savings Bank account from that nominated account, which the bank says is to help protect the security of your money⁷. Second, non-ISA savings accounts can have up to two account holders, and in a joint account each holder can use the account, make withdrawals and close it without the other's approval⁷.

How withdrawals, payments and early access charges work

Withdrawal rules depend on the account type. Easy access accounts and easy access Cash ISAs allow withdrawals at any time online¹. Notice accounts and notice Cash ISAs require the stated notice period, or a charge by way of loss of interest if you take the money early². Fixed rate accounts and fixed rate Cash ISAs apply a charge by way of loss of interest on early withdrawals or transfers, the amount depending on the term².

Timing matters for speed of payment. If you complete a withdrawal transaction before 3pm on a working day, the funds arrive in your nominated account by the end of the following working day; if the transaction is after 3pm or at the weekend, the bank asks you to allow two working days⁷. Payments into your account made electronically before 9pm appear the same day, and payments after 9pm show the following day⁷.

The bank does not charge for normal account management, but there is a charge for CHAPS electronic payment requests². Any payments scheduled for a future date must be cancelled at least one working day before the payment is due to be sent⁷. Standing orders can only be paid into a Notice or Easy Access Cash ISA, not a Fixed Rate Cash ISA, and any standing order payment that would take you above the annual ISA allowance is returned to your nominated account without interest⁷.

Who can open a Charter Savings Bank Cash ISA

Cash ISAs are individual accounts by law: you cannot hold a joint ISA, whereas non-ISA savings accounts with the bank can have two holders⁷. The bank verifies identity and address electronically using third party data authentication systems, and asks for document evidence if that check fails¹⁰.

There is an important restriction on paying in during the same tax year. Charter Savings Bank states you cannot subscribe with it if you have already subscribed with another provider in the same tax year, unless you are transferring all of your current year funds to it². The wider rules have changed so that subscribing with multiple Cash ISA providers within the same tax year is permitted where a provider allows it, but Charter Savings Bank's own condition applies to new money paid in². Residency also matters: becoming a non-UK resident in a country other than those the bank lists means you can keep your existing account, though how you operate it may change, and you will not be able to open new accounts⁷.

Opening an account and transferring an existing ISA

Most accounts are opened online. Easy access accounts and easy access Cash ISAs can be applied for through the bank's website, and the Easy Access Cash ISA is applied for and managed online only¹. The exception is accounts opened under a power of attorney, where you must call the bank to request an application form¹⁰.

If you are moving an existing ISA in, the transfer is arranged through the new provider, and the same applies when leaving. When you open a new Cash ISA with Charter Savings Bank you can transfer all of this year's subscriptions and those from previous years⁷. If you are transferring your current year subscription from another provider, it must be transferred in full; previous years' subscriptions can be transferred in part or in full⁷. One warning the bank gives firmly: never withdraw funds yourself and pay them to your new ISA, as those funds lose their ISA status. The transfer must be done provider to provider⁷.

Charter Savings Bank states it will transfer the money within 5 working days of receiving the fully completed ISA Transfer Instruction Form from your new provider². If you move a Fixed Rate or Notice Cash ISA before the end of its period, you incur a charge by way of loss of interest on each amount transferred⁷. There is also a timing quirk around the tax year end: a Cash ISA application form requested between 6 March and 5 April comes with details for the following tax year, and the account is opened in the new tax year, which starts on 6 April¹⁰.

If you change your mind about a new Cash ISA, you have 14 days from opening to cancel it².

What happens when a fixed rate ISA or bond matures

Charter Savings Bank contacts you at least one month before a fixed rate account matures to remind you of the date, and again at least 2 weeks before². You then choose what happens to the money, and the deadline depends on how you hold the account: online accounts must select an option no later than 2 calendar days before the maturity date, and postal accounts no later than 5 calendar days before².

If the bank does not hear from you, a maturing Cash ISA is transferred into a Cash ISA Saver and a maturing bond automatically becomes an Easy Access Saver Account². If you choose a new fixed rate account, you can add more money during a window after maturity: 14 days from the maturity date for a new online Fixed Rate Bond, 30 days for a new postal Fixed Rate Bond, and 30 days for a new Fixed Rate Cash ISA². This automatic transfer at maturity is common across the market; other providers do the same kind of thing, for example HSBC converts a maturing Fixed Rate Cash ISA to its Loyalty Cash ISA if you do not reinvest¹¹.

Managing your account online, by post and by phone

Charter Savings Bank has no branches. Accounts are operated through its website, and some products are online only¹. Postal applications and instructions are supported for postal versions of accounts, with the longer maturity deadlines noted above reflecting the slower post². Existing customers with an online account can contact the bank using secure message¹².

The bank says it can produce large print, audio and Braille versions of its documents if required, and this reflects wider practice: banks can provide statements and other documents in Braille, large print and audio formats for disabled customers¹². If you need additional support, the bank's additional support pages set out what it can do, including registering a power of attorney¹².

Complaints and the Financial Ombudsman Service

Charter Savings Bank tries to resolve complaints immediately where possible, or within three working days if it needs to investigate further¹⁴. If it cannot issue a final response within eight weeks, or within 35 working days for some complaints about electronic payments, or if you are unhappy with its final response for any reason, you can refer the matter to the Financial Ombudsman Service¹⁴.

This is the standard route across UK banking. The general process is to complain to the firm first, give it eight weeks to investigate and send a final response, and then take the complaint to the free Financial Ombudsman Service if you are unhappy or have heard nothing¹⁵. The ombudsman can look at complaints about individual savings accounts, including how an ISA has been administered¹⁶. If you do not receive a final letter within eight weeks and do not want to give the bank more time, you can contact the ombudsman directly¹⁵.

Power of attorney: who can run an account for someone else

Charter Savings Bank accepts three types of power of attorney: a Lasting Power of Attorney, an Enduring Power of Attorney, and a Court of Protection Order (previously known as a Receivership Order). General Powers of Attorney are not accepted¹⁰. Each type has conditions:

• A Lasting Power of Attorney must be registered with the Office of the Public Guardian, with the date of registration clearly stamped on the first page¹⁰.
• An unregistered Enduring Power of Attorney is accepted unless it contains a condition that it should not be used until the donor is losing or has lost mental capacity; it must be registered with the Office of the Public Guardian as soon as the donor starts to lose capacity, and the bank may require the donor's written approval before opening an account¹⁰.
• A Court of Protection Order must be registered with the Office of the Public Guardian with a Court of Protection stamp on each page¹⁰.

Where more than one attorney is appointed, the bank can only accept a power of attorney operated on a single signature basis¹⁰. Copies of the document must be certified on every page with an identifiable certifier¹⁰. Two consequences are worth knowing in advance. Once an attorney is appointed to operate the account, the account holder is unable to operate it themselves, and the account holder is responsible for the attorney's actions or omissions as if they had made them themselves¹⁰. To open a new account under a power of attorney you must call the bank for an application form, and the initial deposit should be sent only once the bank confirms the account is open, because money received before then is not protected by the FSCS¹⁰. To cancel an attorney's authority, call the bank¹⁰. Correspondence goes to the first attorney's mailing address, with emails to the attorney's email address¹⁰.

More broadly, a power of attorney lets someone handle money for someone else¹⁷, and independent guidance does not recommend opening a joint account with someone for whom you also hold lasting power of attorney, or its equivalents in Scotland and Northern Ireland, partly because the account should be reported as part of the probate process after death¹⁸.

When an account holder dies: what the family needs to do

Charter Savings Bank has a bereavement process that differs for joint and sole accounts. For a joint account, the account automatically transfers into the name of the remaining account holder and continues to operate as it did previously, once the bank is notified of the death and receives at least one of the appropriate documents. Any notice periods or fixed rate periods still apply¹⁹.

For a sole account, all activity is stopped immediately to prevent unauthorised withdrawals or deposits, and the account continues to accrue interest until it is closed¹⁹. The documents the bank accepts are a Death Certificate (original or certified copy), a Coroner's Interim Certificate, or a Solicitor's Verification of Death form (which must be the original)¹⁹. The bank recommends a certified copy of the Death Certificate, certified on each page by a professional person or service, and all documents are returned¹⁹. If a Coroner's Interim Certificate is sent, the bank contacts the Coroner to confirm its validity, and if it cannot, it requires the original or a certified copy of the Death Certificate¹⁹.

What happens next depends on the balance. For a sole account with a balance below £35,000, the bank needs a completed Deceased Customer Account(s) Closure form. Where the balance across the deceased's accounts with the bank exceeds £35,000, the bank requires a Grant of Probate or Letters of Administration¹⁹. Once documents are received, all sole accounts can be closed immediately without notice, including Fixed Rate Bonds before the end of their term¹⁹. The bank can also release money for funeral costs against the original bill or invoice from the funeral director, and for inheritance tax against an official or solicitor's letter detailing the liability plus a completed IHT423 form¹⁹.

Charter Savings Bank does not currently offer APS ISAs, the additional permitted subscription that since 3 December 2014 has allowed bereaved spouses and civil partners to re-invest cash and investments held in a partner's ISA²⁰. In Scotland, how a joint account is treated after death can involve further steps: where holders were not married or in a civil partnership, the executor must establish how much of the account belonged to the person who died so the estate can be valued, and a surviving married holder might have to prove they paid in all the money for the account to be excluded from the deceased's estate²¹.

FSCS protection and the limit shared with Precise Mortgages

Money held with Charter Savings Bank is protected by the Financial Services Compensation Scheme up to £120,000 per eligible person². The FSCS savings protection limit is £120,000, or £240,000 for a joint account, per authorised firm⁶, and joint accounts are eligible with the same £120,000 limit per eligible person, so a couple's joint savings with one firm are protected up to £240,000 in total²².

The critical point for this bank is that the limit is per authorised firm, not per brand. Charter Savings Bank is a trading name of Charter Court Financial Services Limited, whose other trading names include Precise Mortgages, Precise and Exact Mortgage Experts⁴. If you have money in multiple accounts with multiple brands that are part of the same group and share a banking licence, they are treated as one bank and the £120,000 limit applies across all of them²². In practice, savings held with Charter Savings Bank and any deposits with the firm's other brands count together towards one £120,000 limit per person. The firm appears on the Bank of England's PRA list of UK banks authorised to accept deposits⁵, and you can check protection yourself using the FSCS's own tools²⁴.

Temporary high balances, such as the proceeds of a house sale, can be protected up to £1.4m for six months after a qualifying life event²⁶. If a bank fails, FSCS compensation covers deposits automatically up to the limit; the scheme's guidance explains what happens when firms share a licence and how to check where your money sits²³.