Coventry Building Society has announced the launch of a “highly competitive” Two-Year Fixed Bond (302), which pays a favourable interest rate for savers. Furthermore, the financial institution is also introducing its new Limited Access Saver (Online) (8) account onto the savings market.
The Two-Year Fixed Bond pays an interest rate of 4.35 percent which lasts until April 30, 2025.
In comparison, the Limited Access Saver has a rate of 3.10 percent and allows for up to six penalty-free withdrawals each year based on the day the account is opened.
Any additional withdrawals are subject to a charge equal to 50 days’ interest on the amount withdrawn.
As it stands, savers can open Coventry Building Society’s Limited Access Saver account which is available online only.
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Comparatively, the Fixed Bond account can be opened online, at a branch, by phone or by post.
With both accounts, the building society’s customers can open them with just £1 and choose from annual or monthly interest.
Under Coventry Building Society’s rules, customers may only hold one Limited Access Saver at any time.
This latest product rollout comes after a wave of interest rate hikes from the building society in recent months.
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Matthew Carter, the head of Savings at Coventry Building Society, shared why the financial institution is keen to help savers in this way.
He explained: “Savers are looking for value, whether that means locking their money away or having some flexibility to access their savings.
“For those looking for certainty and higher rates of interest, fixed bonds are a popular option with savers who want a guaranteed rate for a set period.
“On the other hand, some prefer the option of having an accessible account with the freedom to dip into to their savings if they need to.
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“Our online Limited Access Saver is ideal for those who are looking for one of the top rate paying accounts in the market and aren’t likely to withdraw money more than a few times a year.”
Interest rates have risen in recent months following decisions made by the Bank of England in the last year.
Over the last 12 months, the central bank’s Monetary Policy Committee (MPC) has chosen to raise the UK’s base rate ten consecutive times in a row.
The base rate is the amount at which the Bank of England charges other financial institutions for borrowing money.
As it stands, the base rate is sitting at four percent and is expected to rise even further in the months to come.
A consequence of this decision is that banks and building societies are partially passing on this rate hike to their customers.
While mortgage holders and people in debt have seen their repayments go up substantially, savers have been awarded with an interest rate boost.
The Bank of England’s MPC is expected to announce further changes to the base rate on March 23, 2023.
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