Martin Lewis offers advice on savings and interest rates
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Coventry Building Society is perhaps a less regular staple of Britain’s high streets, but the provider proves popular each year. Many savers will be looking for the best environment to grow their cash, and identifying the strongest interest rate is a sure fire way to secure success. With the Bank of England’s base rate remaining at 0.1 percent, some may be feeling disheartened.
However, there are options still available, including a strong offering from Coventry Building Society.
The provider’s Regular Saver account current has an interest rate of 1.05 percent – strong in the current climate.
Britons will be able to pay in to their account up to £500 each month to grow their savings.
The interest on the account is then issued annually to savers, but is calculated daily.
This is due to the fact the account lasts for 12 months, after which point it will close.
The account then switches to an Easy Access Saver, allowing unlimited withdrawals without any charge.
It is, however, worth noting that the interest rate on this account is variable – meaning it can go up or down as the building society chooses.
However, Coventry has said it will give its savers ample notice on an interest rate change to help them to be informed.
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Access is allowed to this account, but restrictions will apply for savers.
The building society has explained there is a 30 days’ charge in place which will somewhat limit the flexibility available.
To open this account, individuals are required to be aged 16 or over under the building society’s rules.
A person is also required to be a UK resident as the provider “cannot offer accounts to people outside of the UK”.
Finally, if someone is tax resident in another country or are a US citizen, they may be asked to provide their tax identification number.
The account can be managed and opened in different ways including online, by post, or via telephone.
Coventry Building Society will send a statement to savers each month which can be through the post, or some may choose to go paperless if using online services.
One of the major benefits of this account is that it is covered under the Financial Services Compensation Scheme (FSCS).
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This means that should the worst happen, all funds up to a value of £85,000 will be kept secure.
Coventry, however, is not the only provider offering an attractive interest rate.
While it leads the pack of regular saver accounts open to all, it is followed closely behind by two other providers.
Principality Building Society is currently offering a one percent interest rate, fixed for one year, while Nationwide is also offering a variable one percent rate.
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