Share Account

The Society follows a code of practice (see below) and has to provide a statement to its members of the nature of their share holding investment and any change affecting it.

• As a member you are a shareholder of The Midcounties Co-operative Society Limited. If the society is unable to meet its debts and other liabilities, you will lose the whole amount held in shares, hence it is known as risk capital. This may make it inappropriate as a place to invest savings.

• You may withdraw money from your share account at any time unless the board of directors have removed this facility under the society’s rules.

• Withdrawable share capital does not characterise an investment in the conventional sense. The withdrawable share capital held in your share account may receive interest but the shares do not increase in value. It is primarily for the purpose of supporting your society rather than making an investment.

• The Financial Ombudsman Service does not apply to your share account or your relationship with the society but under the society 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.

Interest

Interest is calculated on the daily balance of each member's share account at the close of business each day.  No interest shall be payable on balances less than £10. Interest rates will be determined by the Board of Directors from time to time in line with market conditions.

Interest is paid gross with the shareholder being liable for income tax.

Please be advised that from 1st October 2023 the interest rate payable on member share accounts will increase from 2.5% to 3.0% for all share accounts with balances over £200. Rates for balances below £200 will remain at 1.5%.

• No interest is paid on share account balances up to £10
• Interest at 1.5% p.a. is paid for share account balances up to £200 (including the first £10)
• Interest at 3.0% p.a. is paid for share account balances over £200

Interest is credited to the member's account once a year in January.

Interest rates are subject to variation. Changes will be publicised by notices in the Society's branches.

Opening/Using your share account 

Applications to utilise your share account shall be submitted in writing in such form as the Board of Directors may prescribe. Evidence of identity/address will be required.

The Board of Directors shall have full power in their discretion to accept or refuse any application for membership. The criteria for considering applications will be on the basis of the applicant's likely participation in the business and activities of the Society and the anticipated support for and adherence to Co-operative principles.

Confirmation will, therefore, be sought that the applicant

a) Trades with the Society
b) Supports the following statement:

The Midcounties Co-operative supports the co-operative principles of the International Co-operative Alliance. These state "co-operatives are voluntary organisations, open to persons able to use their services and willing to accept the responsibilities of membership".

The Board of Directors may delegate the consideration and determination of membership applications to officials or committees, who shall act under the direction and control of and conform to the instructions given by them.

The Board of Directors shall not be required to state reasons for the deferral or refusal of any application.
Applicants will be advised within 28 days if their application has been accepted of refused.

Payments made into your account 

All payment and withdrawal requests need to be sent to:

Share Ledger Team
Co-operative House
Warwick Technology Park
Warwick
CV34 6DA

There are three ways you can invest funds into your Membership Share Account:

1. By cheque (Posted with share account passbook to Share Ledger team at Head Office)

2. By electronic bank transfer (A BACS form can be downloaded here)

3. By standing order (A Standing Order form may be downloaded here)

Please note, The Midcounties Co-operative is a registered Society under the Co-operative and Community Benefit Societies Act 2014, Registered number 19025R. This prevents members from investing more than £100,000. Any payment made that takes the balance of a member's account over £100,000 will not be accepted. Should any account balance exceed £100,000 the excess amount will be paid by cheque automatically to the member.

Withdrawing from your account 

There are three ways you can access the funds in your Membership Share Account:

1. Payment by cheque (A Cheque Withdrawal form may be downloaded here)

2. Payment by electronic bank transfer BACS. Funds will be received into the member’s bank account 3-5 working days after processing date (A BACS form may be downloaded here)

3. Payment by electronic bank transfer CHAPS. Funds will be received into the member’s bank account 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 may be downloaded here)

Please note, for security of your account we will always require your share 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 Member’s address we hold on our system)
No payments can be made to a third party
No cash investments or withdrawals can be made
Please also note that under the Society's Rules, the Board has the power to restrict the level of withdrawals from the Society.
If you require any assistance please do not hesitate to contact the Membership team on 0800 093 7553 (option 4) or email share.ledger@midcounties.coop.

Closing your account 

Written request to close an account should be forwarded, together with the share account book, to the Share Ledger Department at the Society's registered office. The closing balance including interest will be forwarded to the account holder by cheque or BACS. A current “open” share account with a share balance of £2 or less can be closed over the phone by calling 0800 093 7553, providing the member agrees that the share investment can be donated to a charity of the Society’s choice. Different procedures apply for “archived” share accounts. Please call 0800 093 7553 (option 4)for more information.

The Society will not close the account of any member without first giving 30 days notice.

Updating your share account passbook 

You can send your share account passbook to:

Share Ledger
Co-operative House
Warwick Technology Park
Warwick
CV34 6DA

Change of address 

Please notify the Member Services Department in writing of any change of address together with your share account passbook.

Complaints

If you have a complaint please write to the Share Ledger Department at the Society's registered office (as above), telephone 0800 435 902 (option 4) or email share.ledger@midcounties.coop.

Should you remain dissatisfied you can contact the Society's Secretary & Head of Governance, also at the Society's registered office.

Applying interest to share accounts
If you would like your share book updated then you will need to send it into the share ledge team to have your interest made up (postal address below). Interest is applied to accounts of £10 or greater.

Any further questions?
Should you have any questions with regards to your share account, please use one of the following methods to contact The Share Ledger Team:

Telephone - Freephone 0800 093 7553 - Option 4

Email - share.ledger@midcounties.coop

Post:

Share & Investments Team
The Midcounties Co-operative
Co-operative House,
Warwick Technology Park,
Warwick,
CV34 6DA

Before you commit to purchasing shares/a Fixed Term Investment 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/Fixed Term Investments 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:

• 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/Fixed Term Investments 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/Fixed Term Investments 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/Fixed Term Investments 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 Fixed Term Investment 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 Fixed Term Investments.

• The Financial Ombudsman Service does not apply to your Share Account/Fixed Term Investment 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.

Notice to Members - Updating the Register of Members

• To find out more please click here

• As from 1^st April 2023 the Members Share Account interest rate for balances above £200 will be 2.5% p.a. gross value.

Notice to Members – Interest Change to Member Share Accounts

Please be advised that from 1st October 2023 the interest rate payable on member share accounts will increase from 2.5% to 3.0% for all share accounts with balances over £200. Rates for balances below £200 will remain at 1.5%

• No interest is paid on share account balances up to £10
• Interest at 1.5%pa is paid for share account balances up to £200 (including the first £10)
• Interest at 3.0%pa is paid for share account balances over £200

All other terms for share accounts remain unchanged.