Share account vs deposit account

caper7

A question regarding opening a savings account with Furness building society. 

I note it says it is actually a share account not a deposit account. 
Have had a quick Google regarding the difference, but does it matter? 
Should one be concerned, are there any potential issues to be aware of? 

Thanks. 

wmb194

caper7 said:

A question regarding opening a savings account with Furness building society. 

I note it says it is actually a share account not a deposit account. 
Have had a quick Google regarding the difference, but does it matter? 
Should one be concerned, are there any potential issues to be aware of? 

Thanks. 

Don't worry, it's just a normal savings account. "Share account" is essentially Building Society speak to say that having the account will make you a member.

Richard1212

caper7 said:

A question regarding opening a savings account with Furness building society. 

I note it says it is actually a share account not a deposit account. 
Have had a quick Google regarding the difference, but does it matter? 
Should one be concerned, are there any potential issues to be aware of? 

Thanks. 

Just a technicality of little impact on ordinary savers---if you really want to know ( and you don't need to IMHO) google the difference between the 2 types of savings account and "credit union". 

Just as a PS, I know that there is a certain sort of saver who darts to the highest interest rate at any given time ( currently Furness last time I looked). But the better thing to do, IMHO, is to put your savings into Banks/BSs that have a continual and regular place in the Top 5 interest payers. In a month, no-one will even remember Furness because they are a "one hit wonder" and interest rates will go higher with other banks/BSs which are always near the top 5 or top 10 will still be popular with better interest rates. 

Of far more concern to any easy access saver should be the fact that Furness only allows 3 withdrawals per year ( which is always likely with easy access accounts---that's mainly why easy access accounts are used). Why not take a look at Banks/BSs which are always in or around the Top 10 EVERY month over a long period. Personally, I have had over £100,000 in Shawbrook ( which has a history of being one of the top high interest accounts, is currently number 2 in the charts and allows its customer as many withdrawals as they wish.
Good luck with your savings. Best wishes.

friolento

The only time I hyave come across share vs deposit account was with a credit union. With them, only their deposit accounts, not their share accounts, were FSCS protected.

Having had a closer look at the Furness account, it looks as if you get FSCS protection regardless of whether it's a share or a deposit account. The only difference with Furness seems to be that you become a member if you take out a share account, whilst people with deposit accounts are not members. If I were to apply for this account, I would want them to confirm my understanding before making a deposit.

It seems quite weird that they are apparently prohibited to offer this account as a deposit account. Can anyone explain this?