Coventry Building Society has launched a new limited-access savings account with an interest rate of 4.85%.
The launch of the new 4 Access Saver account yesterday drew significant media coverage, as Coventry Building Society interest rates are among the highest currently available on savings accounts.
We look in detail at how the new account stacks up with competitors below.
Savers can apply for the account at the building society’s branches or through post, telephone, online as well as its downloadable app.
The account can be opened with a deposit as little as one pound and a maximum of £250,000. Customers can choose whether to receive interest payments monthly or annually.
In line with most limited access savings accounts, there is a penalty for making more than a certain number of withdrawals from the account in a specified timeframe.
Customers of the new 4 Access Savings Account can make up to four withdrawals every 12 months from the day it is opened without charge. Any more withdrawals will incur a charge equivalent to 50 days’ interest on the amount taken out.
How does it compare with other savings accounts?
The Coventry Building Society interest rates on the building society’s new product are at the top end of those offered by limited access accounts.
Comparison platform Raisin shows only one other account offering such a high rate, the LHV 95 Day Notice Account, which also has a variable interest rate of 4.85% AER. The top rates on rival savings platforms Flagstone and Hargreaves Lansdown Active Savings are significantly lower.
There is a 95-day notice period for withdrawing money from the LHV 95 Day Notice Account. You can only withdraw the full amount deposited, and interest is paid when the account is terminated.
There are a few investment platforms offering comparable rates on uninvested cash, including Trading 212 and Revolut – which recently introduced a 5% rate for subscribers to its top-tier Ultra plan. However, these are not savings accounts in the typical sense and the rates they offer are liable to change at short notice.
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
You can contact Robin at robin@goodmoneyguide.com
