Martin Lewis offers advice on savings and interest rates
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Coventry Building Society is a popular option for savers with several branches as well as the option to manage an account online. With interest rates so low at the moment, savers will be looking for ways to increase their cash while keeping it safe. The Regular Saver account, the building society says, helps the “little you put away each month” to become “more than just money”.
The interest rate currently being offered through this account is 1.05 percent gross.
At present, this makes it the top regular savings account and a competitive option for those who want to build their cash.
The account last for 12 months for those who choose to open it, and interest is calculated daily.
It is then paid annually on the anniversary of the date a person opened their account.
Interest can be added to this account or paid away into another suitable account, the building society has said.
It is worth noting the interest rate is variable, which means it can go up or down at any time.
Coventry Building Society will let Britons know if this should happen, so savers can be prepared.
Each month, savers can pay into the account as many times as they would like, up to a maximum of £500.
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People will be able to pay in more than once, as long as the total each month is not more than the limit.
If a payment does take a person over the £50 monthly limit, then the whole sum will be returned to them.
The monthly allowance element of this account is also particularly important when savers are paying in.
For a sum to count towards a specific month’s allowance, it must arrive before the day of the month someone opens their account.
As a result, the building society has recommended savers make sure all money for the month is paid in a few days before the monthly anniversary date of opening the account at the latest.
This is because any money which arrives after the anniversary date is counted towards the next month’s allowance.
The minimum balance for this account is £1 – making it perfect for those who are just starting a savings journey.
However, it is also important to note the rules about withdrawing money from this account.
Individuals will be able to take money out of their account if they should so need to, but there will be consequences for doing so.
Savers can expect to meet a charge equal to 30 calendar days worth of interest on the amount they withdraw.
The charge is deducted from the balance of the account when a person withdraws funds.
For those who are interested in opening the account, there are various ways to do so.
The account can be opened online, via the telephone or by post.
Savers must be aged 16 or over in order to open this account.
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