Coventry Building Society has recently re-launched the online savings account making it the “top easy access rate” offered in the market at the moment, according to MoneySavingExpert.com. Coventry Building Society has warned that the account is a “limited issue” so they may stop accepting applications at any time.
With the interest rate it is currently offering, someone depositing £1,000 into the account could earn an extra £28.50 worth of interest over the course of one year.
Someone stashing away £10,000 into this account could expect to earn £285 in interest after 12 months.
The interest is calculated daily and savers can choose to be paid it annually on the anniversary date of the account opening or monthly, at the end of the last day of each month.
The Limited Access Saver account is a variable account which means the interest rate can go down as well as up during its term.
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When the interest rate goes up, Coventry Building Society will let someone know “as soon as reasonably possible” through notices in their branches and online.
If the interest rate drops, the building society will give at least 14 days notice before the change happens.
This is for all accounts, both with balances of less than £100 and over it.
However, like with many savings accounts, there is a slight catch to the Limited Access Saver.
Savers looking for an easy-access account to use as an emergency fund for one-off unexpected events may well see the appeal of this account.
However, for savers who regularly need to dip into their funds, the limited access element may mean this is not the account for them.
The Bank of England has spent the last year upping its base interest rate with the current rate being three percent.
Last month the central bank upped the rate by the highest the UK had seen in over 30 years.
Economists predict interest rates will continue to rise throughout 2023 and that the rate will surpass four percent at the beginning of next year.
The Bank of England’s next meeting of the Monetary Policy Committee meeting will be conducted on December 15, with many expecting a further base interest rate increase to be announced.
This means savers could see another rise in the interest rates offered by banks.