Coventry Building Society has announced the launch of two market-leading fixed rate ISAs available to new and existing members from today.
Cash ISAs are a popular savings option as they come with additional benefits, such as enabling savers’ money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA).
Cash ISAs offering a fixed rate also help add another layer of certainty, as savers are able to lock in the interest rate offered at the time of opening without having to worry about it changing.
However, these accounts typically come with a few more restrictions, such as stricter withdrawal terms. This means savers should be comfortable with investing the money without touching it until the term ends.
Coventry Building Society’s new One Year Fixed Rate ISA (219) pays a top rate of 5.1 percent until September 30, 2024, and the Two Year Fixed Rate ISA (220) pays a rate of 5.2 percent until September 30, 2025.
Interest rates on savings accounts are growing increasingly competitive after 13 consecutive Base Rate hikes.
The new accounts can be opened with a minimum of £1 online, by phone, post or in the branch and will accept ISA transfers in from this and previous years. A maximum of £20,000 can be paid into an ISA in the current tax year.
Matthew Carter, head of savings at Coventry Building Society, said that with savings rates improving and at “the highest levels seen in 15 years”, ISAs have made a come-back.
He said: “Over £20billion is saved in ISAs so far this year compared to only £1.5billion in the same period of 2022.
“Yet only 15 percent of household savings are held in ISAs which means many savers could be missing out on tax breaks now and in the future if they haven’t put their savings into an ISA.
“Fixed rate tax-efficient savings are ideal for those looking for higher rates of interest and guaranteed returns over a set period.
“Our new range of ISAs fixed for either one or two years are great options for new and existing members who are comfortable fixing their money away for the short or medium term, in accounts offering the highest ISA rates on the market.”
Alongside the new fixed rate ISA range, Coventry Building Society is also launching a range of fixed bonds.
The one-year option will pay a rate of 5.65 percent fixed until August 31, 2024, and the two-year option offers a competitive rate of 5.75 percent fixed until August 31, 2025.
The society has also launched a new one-year Loyalty Fixed Bond to reward steadfast savers by paying a market-leading rate of 5.9 percent.
The account is available to members who have been with the society continuously since January 1, 2022, and people can save up to £20,000 from an opening deposit of £1.
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