HomeHow is interest calculated?
The current interest rate is 3.55% gross AER fixed until 30th April 2013.
Is interest accumulated to my savings?
Savers have a choice between monthly and annual interest options. Annual interest can be either added to your account or paid to a separate account, monthly interest must be paid to a separate account.
How long do I have to tie my savings up for?
Until the maturity date of 30th April 2013. At maturity savings will automatically be reinvested unless you tell the Coventry Building Society not to do so.
Can I get access to my savings?
No. Early access to your savings is not allowed and the account cannot be closed before the end of the fixed term.
How do I manage my account?
The account can be opened and managed online.
Money can be paid into the account via a direct transfer from your bank or building society, by cheque or a transfer from an existing Coventry Building Society account.
Accounts can be managed online, on the telpehone or in branches of the Coventry Building Society.
How much can I save?
The minimum amount needed to open the Poppy Online Saver account is £1, the maximum which can be saved is £250,000.
How is the interest taxed?
Interest is paid net of tax unless you are a non taxpayer when interest can be paid gross.
What are the advantages of this account?
- The interest rate is very competitive, compared to other accounts offering a fixed rate of interest for 18 months
- The minimum amount needed to open the account is just £1 meaning that it is accessible to all savers
- Coventry Building Society are members of the Financial Services Compensation Scheme (FSCS)
- The Coventry Building Society make a donation to the Poppy Appeal of 0.05% of the total of the balances held in the Poppy Bond (8). Since 2008 the Coventry Building Society has raised over £5 million for the Poppy Appeal (Source: Coventry Building Society)
- The bond offers both annual and monthly interest options
What are the disadvantages?
- You cannot get access to your savings until the end of the fixed rate
The Investment Sense Verdict
A strong thumbs up from us.
Despite the fact you cannot access your money during the fixed rate (in common with most other fixed rate accounts it has to be said) we like this bond. Low minimum initial deposit, a variety of ways to manage your account, a great interest rate and the fact that a donation is made to the Poppy Appeal all add up to a really attractive offering.
Should you wish to discuss this account, or ways of getting a real, above inflation, return on your savings, speak to one of our team of advisers today. They can be contacted on 0115 933 8433, 0845 078 7774 or by sending an email to info@investmentsense.co.uk.
