- Interest on your share capital
- Member dividend
- Additional members in your household
- How to invest further in your share account
- How to make a withdrawal from your share account
- Payment of interest
- The risks of investing
- Code of practice
- Become a Phone Co-op Champion
- How the Sustainability Fund works
The rate of interest is currently 1.5% gross per annum (as of 01/11/16), and in accordance with the law relating to Industrial and Provident Societies is paid without deduction of tax. The Personal Savings Allowance was introduced on 6 April 2016, which means if you are a basis rate taxpayer you are able to earn up to £1,000 in savings income tax-free. Higher rate taxpayers will be able to earn up to £500.
The dividend is split between the members in proportion to their spend with The Phone Co-op during the financial year in question, and is paid after the AGM, where members are asked to approve that year's dividend payment.
For the financial year 2014-2015 the amount allocated to members' dividend was £57,707. This is equivalent to 1.5% of members' VAT-exclusive purchases from The Phone Co-op in the year ended 31 August 2015.
You can have multiple members from one service with us, as long as each person can sign their name. Each member will receive interest on their investment and can add or withdraw without notice or penalty. Only the first member will receive a dividend as it is based on call/broadband/mobile spend. Join now.
The minimum investment is just £1, although we do like to encourage members to consider investing more than that. Under current legislation, the maximum amount anyone can invest is £100,000.1
Investments of share capital can be made in the following ways:
- By bank transfer: You can make a transfer from your bank to ours. Our account number is 50104325 and the sort code is 08-92-50. Please quote your share account number as a reference".
- By post: Simply send your payment and a covering letter quoting your share account number to:
The Phone Co-op Limited
Elmsfield Business Centre
Cheques to be made payable to 'The Phone Coop Ltd'. Please quote your share account number as a reference.
By phone: To invest up to £100 call our customer service department on 01608 434000 stating your membership account number, the amount you wish to invest and have your bank card details to hand
Or you can even set up a Standing Order to make regular investments.
Want to make a withdrawal? Simply send a written request informing us if you wish to receive a cheque or bank transfer, along with your account details to:
The Phone Co-op Limited
Elmsfield Business Centre
Withdrawals can be made at any time without penalty and will normally be processed within one week of receipt of a member's request.
The notice period for withdrawals is set by the Rules at one week. The board has the power to waive this but is unlikely to do so unless there are exceptional circumstances.2
Interest will be credited to your account once per year.3 Interest is paid gross without deduction of tax, and it is the responsibility of members to declare the interest received on their tax returns, and to pay any tax due. Currently, the interest rate is 1.75% gross per annum but will reduce to 1.5% gross per annum from 1 November 2016.
You can choose to waive the interest and/or dividend on your share account in favour of our Sustainability Fund.
To do so, please download and complete our form.
Members should be aware that share capital in a co-operative is risk capital. Ultimately, if things were ever to go wrong for The Phone Co-op, share capital would be at risk. We aim to build a strong and successful co-operative business, with more than enough assets to cover its members' capital.
However, as an organisation committed to openness and transparency we feel it is only right that we should warn members that there is some risk. Please see the note below on the code of practice we adhere to in relation to share capital.
The Society, unlike banks and building societies, is not subject to prudential supervision by the Financial Conduct Authority. The Phone Co-op abides by a code of practice which requires it to provide a statement to its shareholders of the nature of their investment and any change affecting it.
The position you occupy as a shareholder of The Phone Co-op is no different from that of a shareholder in any other corporate body in the sense that, if The Phone Co-op fails, you may not have all, or any of your investment returned to you.
Your liability, however, does not extend beyond your own investment. Your investment is withdrawable without penalty.4
If you have any questions regarding the code, please address them to: The Secretary, The Phone Co-op Limited, 5 Millhouse, Elmsfield Business Centre, Worcester Road, Chipping Norton, Oxon OX7 5XL.
What if I have any questions?
If you have questions or would like further information, 01608 434 006 or ask a question by filling in our form; we will respond to you, within three working days.
1An exception applies to other societies incorporated under the Industrial & Provident Societies Acts, where there is no maximum. back
2The Board also has the power to suspend withdrawals. back
3Subject to approval by members at the Annual General Meeting. back
4If you make withdrawals leaving a balance of less than £1, you will cease to be a member. back