What would happen to your savings and loan if you die?
Not only does choosing to borrow and save with Northern Community Bank support your local communities, it also means your loved ones are supported should you die, through our Bereavement Fund on both savings accounts and loans at Northern Community Bank.
This is a huge benefit for our account holders and their families as this support is not something offered widely by other financial institutions, especially at no extra cost.
As an ethical lender the purpose of offering this support is because it enables a better financial future for our account holder’s families. As at a tough time, a lump sum of money can help minimise the financial impact that your death could have on your loved ones.
What will happen to my savings?
Through the Bereavement Fund, savings may be doubled up to a maximum of £5,000 across Northern Community Bank savings accounts, where funds were deposited between birth and the age of 65, and 25% for funds deposited between the ages of 65 and 80.
With the introduction of the Bereavement Fund, additional support is provided for account holders with savings balance below £250, where savings are deposited up to the age of 65, the balance may be topped up to £500. The Bereavement Fund payment will be calculated from eligible saving account balances, held 6 months prior to death.
Meaning in the event of your death your savings balance and an additional Bereavement Fund payment will be paid to the person who is named as beneficiary of your account.
It’s extremely important your beneficiary details are kept up to date, the best way to do this is by emailing us at hello@northerncb.uk or by messaging us on our app.
This means you are not only saving for your own future, but also for that of your family. With the added benefit of savings support through the Bereavement Fund, your nest egg could help towards funeral costs or could be left as a legacy for your loved ones in the event of your death. To open a Northern Community Bank savings account today – Click here.
What will happen to my loan?
If you were to die before your Northern Community Bank loan is repaid, the Bereavement Fund may also be used to repay an outstanding loan balance.
Meaning where account holders meet the Bereavement Fund’s eligibility criteria, the full loan balance will be repaid, so that it is not passed on to your loved ones.
Needless to say it will not take away the pain but it will certainly help reduce the potential financial strain of bereavement. This benefit is included at no extra cost to you as part of the Community Bank loan arrangement, so just for once, peace of mind does not cost the earth; it is just another benefit of being a Northern Community Bank account holder and choosing to borrow responsibly. If you would like to apply for a Northern Community Bank loan today – Click here.
Examples where account holders meet the Bereavement Fund’s eligibility criteria
- Mrs A, age 60 is a Northern Community Bank account holder. 6 months prior to her death, she had £20 in savings, and no loan. Mrs A’s beneficiary may receive £500, the minimum pay out amount.
- Mr B, age 64 is a Northern Community Bank account holder. 6 months prior to his death, he had £800 in savings and a £3,000 loan. Mr B’s beneficiary may receive £1,600 (£800 savings, doubled) and the Bereavement Fund may also repay the loan.
- Mr C, age 64 is a Northern Community Bank account holder. 6 months prior to his death, he had £20,000 in savings and a £6,000 loan. Mr C’s beneficiary may receive £5,000; the £20,000 savings will be part of Mr C’s estate and The Bereavement Fund may also repay the loan.
- Mr D, age 75 is a Northern Community Bank account holder. 6 months prior to his death, he had £20,000 in savings deposited before the age of 65 and a £6,000 loan. Mr D’s beneficiary may receive £5,000; the £20,000 savings will be part of Mr D’s estate and The Bereavement Fund may also repay the loan.
More examples can be found in the Terms & Conditions.
Northern Community Bank remains committed to supporting its account holders and their families during difficult times. The Bereavement Fund is a discretionary fund and is not an insurance product. Of course, this excellent support is subject to terms and conditions which can be found here. If you do require any additional information about the Bereavement Fund please contact a member of staff.
It’s extremely important your beneficiary details are kept up to date, the best way to do this is by emailing us at hello@northerncb.uk or by messaging us on our app.
