Boost for savers as building society unveils some market-leading rates
The new deals include a one-year fixed-rate Isa at 5.30% and a two-year fixed-rate Isa at 5.40%.
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Your support makes all the difference.Coventry Building Society unveiled some market-leading savings rates on Wednesday.
The move comes at a time when providers have been under fire for savings rates lagging behind mortgage rates.
The deals from the Coventry include a one-year fixed-rate Isa at 5.30% and a two-year fixed-rate Isa at 5.40%.
Moneyfactscompare.co.uk confirmed that these deals lead its “best buy” tables.
The website added that the society’s Junior Isa also leads its best buys, at 4.70%.
It's fantastic to see Coventry Building Society offer such competitive rates for savers. They may well prove a popular choice, particularly for those savers who wish to use their Isa allowance
The Coventry’s limited access saver account, which currently pays 3.55%, will increase to 4.30% from Friday July 7.
The account offers six penalty-free withdrawals each year based on the day the account is opened, with additional withdrawals subject to a charge equal to 50 days’ interest on the amount withdrawn.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: “It’s fantastic to see Coventry Building Society offer such competitive rates for savers. They may well prove a popular choice, particularly for those savers who wish to use their Isa allowance.
“Those savers comfortable to invest their cash for either one or two years will find the fixed Isas are currently market-leading.”
We continually review our savings range and try to make interest rate decisions as quickly as possible
Daniel McDonald, senior product manager at Coventry Building Society, said: “Whether our members are saving in variable or fixed accounts, we continually review our savings range and try to make interest rate decisions as quickly as possible.
“And because we don’t give new savers better rates than our existing members on like-for-like products, the rates for our long-time savers are at least as good as the competitive rates we offer on the market today.”
Nationwide Building Society also announced some new savings deals on Wednesday, including the launch of a one-year fixed-rate Isa and one-year fixed-rate bonds paying 5.10%.
According to Moneyfacts, the average one-year fixed cash Isa rate on the market is 4.49%.
The average easy access savings rate pays 2.48%.
Moneyfacts said savers can get easy access savings rates at 4.35% from both Yorkshire Building Society and Family Building Society.
The Bank of England base rate stands at 5% following 13 hikes in a row. Across all deposit sizes, the average two and five-year fixed-rate mortgages on the market charge borrowers more than 6%, according to Moneyfacts’ data.
The Financial Conduct Authority (FCA) has summoned bosses from major banks to attend a meeting on Thursday, to discuss concerns about the treatment of savers.
Asked previously whether banks’ behaviour amounted to profiteering, the Prime Minister’s official spokesman said: “It’s something the regulator is looking into.”