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Online Offset Share Savings

An offset share savings account means you can offset your savings against your mortgage and only pay interest on the difference.

This account is currently closed to new customers

Account name Online Offset Share
What is the interest rate?

You will not earn any interest on any balance in the Online Offset Share account as any investment up to the maximum limits permitted is being used to reduce the amount of interest charged on your mortgage.

Offset Share accounts are the only savings accounts which can be linked to a mortgage. An Offset Share can only be linked to one mortgage. The mortgage will be linked with an Offset Share to reduce the amount of interest charged on the mortgage. Mortgage interest will be calculated on the daily difference between the mortgage balance and the share account balance.

Subject to any future changes in legislation by the Inland Revenue, as you will not be receiving interest on your Offset Share account, you will not be liable to Income Tax on your Offset Share account.
Can the Melton Building Society change the interest rate?

n/a
What would the estimated balance be after 12 months based on a £1,000 deposit?

As no interest is paid on this account, if you deposited £1000 in this account, after 12 months you would have £1000.
How do I manage and open my account?

This account is only for UK resident individuals aged 18 or over who have a mortgage with the Melton

For the online option, your account will be opened manually by a member of staff upon completion of your mortgage but operated online by you. Alternatively, you can request to open an Offset Share after completion has taken place.

Once open you will have easy access to your savings 24/7 which will allow you to manage your account via our website.

Accounts can be opened and managed with a nil balance. You can invest and maintain up to 20% of the current balance of your mortgage to a maximum of £250,000.

Any savings in excess of the 20% limit will not be included in the share balance when calculating the daily difference between your mortgage and share balance.

We do not assume the responsibility to notify you if the Offset Share account balance exceeds the 20% allowance and you are not receiving any real benefit on the excess.

Your monthly mortgage repayments will not be adjusted either up or down as a result of the amount held in an Offset Share account linked to your mortgage.

You may make withdrawals from the Offset Share without notice or penalty, subject to branch, or online limits. There is a maximum daily withdrawal limit of £10,000.
Can I withdraw money?

Easy Access - you can transfer funds from your account online without notice or penalty to a nominated bank/building society account.

When you withdraw funds, interest is calculated up to the day prior to the withdrawal being made for the purpose of calculating the daily difference between the mortgage balance and the Offset Share account balance.

Withdrawals are subject to the limits explained in our savings terms and conditions.
Additional information

This is a summary of the key features of this account. You will still need to read the savings terms and conditions.

If upon redemption of the mortgage we have not received any instructions to either transfer the Offset Share or to close the account, the account will be transferred to our Instant Access Share account.
Tax treatment depends on individual circumstances and may be subject to change in the future

This account is currently closed to new customers

  1. Gross rate is the contractual rate of interest payable without tax taken off.
  2. It is your responsibility to declare any interest you earn over your Personal Savings Allowance directly to HMRC
  3. Net rate is the rate of interest which would be payable after allowing for the deduction of income tax at the rate specified, currently 20%.
  4. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded each year (as every advert for a savings product which quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time).
  5. The tax free rate is the contractual rate of interest payable where interest is exempt from income tax.
  6. The Melton Mowbray Building Society is a participant in the Financial Services Compensation Scheme established under the Financial Services and Market Act 2000.
  7. Rate of interest payable depends on individual circumstances and may be subject to change in the future.
  8. Tax treatment depends on individual circumstances and may be subject to change in the future.
Click here for our handy guide to making the most out of your savings

Get In Touch

Call one of our friendly advisors on 01664 414141. Opening hours are 9:00am – 5:30pm Monday to Friday.

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Bank of England Base Rate

On 1st August 2024 the Bank of England’s Monetary Policy Committee (MPC) met and decided to decrease the Bank Base Rate by 0.25% to 5.00%.

Following this change, Base Rate tracker mortgages will be decreased by 0.25% from the 1st September 2024.

Please bear with us – our telephone lines may be busier than usual as we help our customers.

If you have any concerns about financial difficulty, please contact the Mortgage Services Team on 01664 414141 so we can help support you.