Published On: Fri, Mar 15th, 2024

Coventry Building Society launches ‘highly competitive’ 6.75% interest savings account | Personal Finance | Finance

Coventry Building Society has launched an exclusive regular account offering a “highly competitive” of 6.75 percent.

The new Loyalty Regular Saver (2) can be opened by those who have been with the Society continuously since at least January 1 2023 with a minimum deposit of £1.

The account lasts for one year and savers can invest up to £250 each month. If the maximum of £250 is saved every month, after 12 months, the total amount saved with interest at its current rate would amount to £3,109.43.

Jonathan Wilson, senior savings propositions manager at Coventry Building Society, said: “As a member-owned organisation, we don’t have shareholders to pay.

“And our loyalty accounts offering exclusive rates to our two million members are a way of rewarding those who choose to keep saving with us.

“We think our new Loyalty Regular Saver (2) will be popular with our long-standing members as it offers great value for those wanting to get into a savings habit.”

Mr Wilson added: “We’ve tried to be as flexible as we can to cater for our members who want to build up their savings in different ways. Some may want to save every week, for others, it may be once a month, and some might want to take a break from saving from time to time.

“We’ve kept the minimum balance at just £1 and there’s no limit on the number of times savers can put money in over the year, as long as it doesn’t exceed £250 in a month.”

The Loyalty Regular Saver (2) can be opened online, in a branch, over the phone or by post and offers a variable rate of interest of 6.75 percent for 12 months.

After 12 months, the account matures into Easy Access Saver (7) – a variable rate account which allows unlimited withdrawals and currently pays a rate of 3.10 percent.

For those that don’t qualify, the Society also offers a Regular Saver (6) account open to all new and existing customers in a branch, online, by post or over the phone at a rate of five percent.

Flexible deposits of up to £500 can be made each month with no monthly minimum, and savers don’t need a linked account to qualify.

But while Coventry Building Society may be offering an attractive deal, the new account doesn’t quite top the market yet.

Three providers, first direct, Gatehouse Bank, and the Co-operative Bank, are currently offering a rate of seven percent on regular savings accounts.

Online-based bank first direct’s deal is fixed for 12 months and Britons can get started with just £25. Savers must have a 1st account to open it and interest is calculated daily and paid on account maturity exactly one year after opening.

Between £25 and £300 can be deposited per month in multiples of £5, and withdrawals are not permitted throughout the 12-month term.

Gatehouse Bank offers an Expected Profit Rate of seven percent for 12 months. Gatehouse Bank operates under Sharia principles, which means profit is earned instead of interest. The account can be opened with a minimum deposit of £1 and people can save up to £300 a month. Profit is paid on maturity and withdrawals are not permitted until the term ends.

Meanwhile, savers can deposit up to £250 a month to the Co-operative Bank’s account, meaning up to £3,000 can be invested over the 12-month term. Interest is paid on maturity and withdrawals are permitted without penalty or notice.

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