What is it?
- We will open this account for you if you take out a loan with us that has a savings condition, such as a Savings-Based Loan.
- A savings condition means that when you accept the loan, you must deposit a certain amount of money in your Secured Savings account.
- The details of how much you must save are in your loan agreement.
- We may also require you to save extra money into this account every time you make a loan payment.
Key facts
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Dividend included?
Yes. This account pays an annual dividend, subject to approval.
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Life savings insurance included?
Yes. A Secured Savings account includes life savings insurance to pay a lump sum to your beneficiary upon your death (T&Cs apply)
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FSCS protected?
Yes. All your savings are protected by the Financial Services Compensation Scheme up to £120,000.
What our happy members say
“Been saving so I can eventually get a loan as my credit is bad. This gives me a better chance.”
K
“Great to save with. Good for repayable loans. Always supportive. Got me back on track financially.”
Carolyn H
Am I eligible?
To open a Secured Savings account you must be:
- 18 or over
- A member of South Yorkshire Community Bank
Key features
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The money in this account is security against your loan. This means that if you can’t repay your loan, we can use this money to pay the loan for you.
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You can’t withdraw from your Secured Savings while you have a loan balance outstanding (withdrawals from other savings accounts are allowed).
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You can hold more than one savings account with us, up to a total of £25,000.
How to open a Secured Savings account
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Apply for a Savings-based Loan
We will open a Secured Savings account for you when you apply for a savings-based loan.
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Receive your loan information
Your loan agreement will show how much you need to save before you can receive your loan.
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Start saving
Your savings will be kept in your Secured Savings account until you’ve repaid your loan in full.
Managing your account
- You can make deposits as often as you like, up to £25,000 in total across all savings accounts
- You can’t withdraw from your Secured Savings account while you have a loan balance outstanding.
- Once you have repaid your loan, we will transfer your Secured Savings into an Easy Saver account, which you can withdraw from any time by phone or in person to your nominated bank account, or online to any UK bank account.
- We will send you an annual statement by post or email in February.
- You can ask for additional statements at any time, free of charge, or see your transaction history online.
Get the app
Did you know you can manage your savings and loans with our app?
Scan the QR code on your mobile device to download the app now.
Secured Savings FAQs
Below you will find out most frequently asked questions about our Secured Savings account. For more FAQs, explore our Resources hub.
App and Online Services
Can I pay cheques into my savings account via the app?
No. You can only pay a cheque in at either of our branches, or you can send it to us by post.
Interest and Dividend
How much dividend do you pay?
We cannot guarantee that a dividend will be approved at our Annual General Meeting, and past performance is not a reliable indicator of future results.
Your dividend will be calculated based on your average savings balance over the year, and paid the following March, shortly after the AGM. See more on our Dividends page.
If you do not want to receive dividends on your savings, please complete a Dividend Opt-out Declaration form.
Managing My Account
When can I close my Secured Savings account?
You can close you secured savings account when your loan is repaid in full.
How do I pay into my savings account?
You can pay in by:
- Standing order
- Payroll deduction if you employer is part of our payroll scheme
- Benefit transfer
- Cheque ( 14 working days clearing time)
How do I close my Savings account?
To close your account, you should withdraw the full balance, and stop paying in. If you have a regular deposit which is split across multiple accounts, please let us know how much you would like to pay into your remaining accounts in future.
Product Basics
What is a Secured Savings Account?
Your Secured Savings account helps you to build savings so that you are eligible to receive our better value Savings-Based Loan.
Will my savings be safe?
Yes. All your savings accounts with South Yorkshire Community Bank are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000. That means your savings are safe, even if something happens to South Yorkshire Community Bank.
Savings Withdrawals
Are there any charges for withdrawing my money?
Withdrawals are free of charge online. There is a £2 charge for prearranged or over the phone same day transfer.
Can I withdraw from my Secured Savings?
Secured Savings are held as security against a loan, so they are not able to withdraw your savings until the loan has been repaid in full.
Find out more about our great value and flexible Savings Based Loans on our Saving-Based Loans page.
How can I withdraw from my savings?
You can withdraw your savings to your nominated bank account online, by phone or by calling in to see us.
To withdraw your savings online, you can request a withdrawal (not available for junior accounts). Online withdrawals are free, and will be processed within one working day, excluding weekend and bank holidays.
To withdraw by phone, you will need to have set up a withdrawal password. If you have this in place, call us on 0114 276 0787. When you call, we will ask you some security questions, including your password.
To withdraw in branch, you can visit us at any time or complete a withdrawal form. There is £2 a charge to request withdrawal over the phone or in person. If you want to withdraw £10,000 or more, please contact us by phone or visit our office.
Terms & Conditions: Secured Savings Account
I understand and agree to these terms:
- I agree to keep the balance in my Secured Savings account at or above the amount specified in my loan agreement, until I have fully repaid my loan.
- If my loan agreement requires me to make regular payments into my Secured Savings account, I agree to continue making these payments until I have fully repaid my loan.
- I cannot make any withdrawals from my Secured Savings account while I have a loan balance.
- Once I have fully repaid my loan, I can withdraw funds from Secured Savings. I understand that doing so may mean I am no longer eligible for Saver or Super Saver loans, or may limit the amount I can apply for.
- If South Yorkshire Community Bank makes a surplus and declares a dividend at the Annual General Meeting, I will receive a dividend as a percentage of the balance of my Secured Savings. Dividends are not guaranteed, and the dividend rate may vary from year to year. I will not receive a dividend if my membership is dormant. I can find more information, as well as previous years’ dividend rates, online.
- Details on how to cancel this account are in my loan agreement.
- The maximum balance I can hold across all of my South Yorkshire Community Bank accounts is £25,000.
- These terms may be varied from time to time, and I understand that I can find the current version, as well as the Credit Union Rule Book which details other requirements of membership, online at www.sycb.co.uk. I can also request copies of these documents via phone, email or post.
Funds in the Secured Savings account are covered by the Financial Services Compensation Scheme, which protects deposits up to £120,000 in the event of the failure of South Yorkshire Community Bank. For more information visit www.fscs.org.uk.
In addition to these terms, more details on how we will manage your account, including the dormancy process for unused accounts, can be found in the New Joiner Information pack, Privacy Policy and FSCS Information Sheet. If you have not received these documents, or would like another copy, please visit www.sycb.co.uk or contact us by phone on 0114 276 0787, or email admin@sycb.co.uk.