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How is interest calculated?
The current interest rate is 3.15% gross AER which includes a bonus of 1.15% AER in the first year.
Is interest accumulated to my savings?
Savers have a choice, interest can be paid annually on the anniversary of opening the account or monthly on the last day of the month
How long do I have to tie my savings up for?
The account offers ‘instant’ access to your savings.
The first four withdrawals each year are penalty free. Any additional withdrawals will incur a penalty of 50 days interest on the amount withdrawn,
Can I get access to my savings?
Yes, subject to the maximum number of penalty free withdrawals.
Withdrawals can be paid to a nominated bank account or another account with the Coventry Building Society.
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.
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.
An R85 form should be completed by non tax payers to ensure that interest is paid gross.
What are the advantages of this account?
- The interest rate is currently the best amongst all instant access deposit accounts
- The minimum amount needed to open the account is just £1 meaning that it is accessible to all savers
- Coventry Building Society is a member of the UK Financial Services Compensation Scheme (FSCS)
- The Coventry Building Society makes a donation to the Poppy Appeal of £10 for every £20,000 saved into the account. Since 2008 £5m has been donated (Source: Coventry Building Society)
What are the disadvantages?
- If you need to make more than four withdrawals in a year a penalty will be charged
- The bonus interest rate will last for 12 months, after which time the interest rate will fall and may become uncompetitive
The Investment Sense Verdict
The closest two accounts on our best buy savings accounts are offered Santander and the Nationwide, both of which include a bonus for the first 12 months.
Nationwide pay a gross interest rate of 3.08% per year, although only one withdrawal is allowed per year. Santander pays 3.10% gross per year, with no limits on the withdrawals which can be made.
If you only need access to your money four times a year, or indeed less, then the Coventry account offers better value than its two closest rivals. It also comes with the added advantage that a donation will be made to the British Legion’s Poppy Appeal which helps ex servicemen.
However if you think you will need more than four withdrawals a year, then Santander account is probably offers a better bet.
Should you wish to discuss this account or other savings options 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.
You can also search for the best savings interest rates by using our best buy tables.
