Coventry BS now has the best buy savings deal easily accessible
- Savers who sign up with Coventry can receive a return of up to 5.15%.
- The account only allows up to three free withdrawals per year
- The best accessible, fixed-rate accounts are now practically affordable
Coventry Building Society is now at the top of the accessible savings tables with a rate of 5.15 per cent.
Savers who open an account with Britain’s second-largest building society will earn £515 in interest on a £10,000 deposit over one year.
There is one slight catch. The account only allows up to three free withdrawals per year.
From the fourth withdrawal onwards, savers will earn a fee equal to 50 days of interest based on the amount they withdraw.
Online perks: Coventry Deal currently leads the market when it comes to ease of access but limits savers to three withdrawals per year
The account is only available online and savers can deposit up to £250,000, albeit with only up to £85,000 protected under the Financial Services Compensation Scheme (FSCS) or up to £170,000 in the case of joint accounts.
Savers can choose between annual or monthly interest, which can be credited to the account or paid into their linked bank account.
Savers looking for an accessible account without restrictions can get 5.1 percent through either Close Brothers or Cynergy Bank.
Cahoot also offers an interest rate of 5.2%, but only on balances up to £3,000.
However, unlimited withdrawals are an important factor for savers. Hence the ease and speed required to open an account.
This is Money’s deputy editor, Helen Crane, who has actually tested the new Coventry account.
She said: “I opened a Triple Access account over the weekend and it was very easy.
“It took about five minutes from start to finish and didn’t include some of the tedious identity verification processes that some savings providers put you through that can take days to complete.”
Easy access or fixed prices
Coventry’s 5.15 per cent deal means the best easy-to-access, fixed-rate accounts are now practically price-matched.
The best fixed rate is a one-year fixed rate currently offered by SmartSave Bank that pays 5.16 per cent.
This will leave some wondering if there is any reason to deposit their money into a fixed rate account, which they will not have access to.
However, there is still debate to be fixed given that speculation has now turned to when the Bank of England will start cutting its key interest rate.
Savings rates peaked above 6 percent, but have fallen sharply since the fall
While the best accessible rates are on par with the best fixed rate deals, these rates are variable and so could change quickly if the Bank of England starts cutting its base interest rate.
For savers, the issue is whether they should seize the opportunity to lock in interest rates and hold them above 5 per cent now, before they are all gone.
Last week, the Bank of England kept its key interest rate again at 5.25 percent last week, holding on to the level it has been at since August last year.
Following last week’s Monetary Policy Committee meeting, markets are now pricing in 100 basis point cuts – leaving the policy rate at 4.25 per cent by the end of 2024.
(tags for translation) Daily Mail