Coventry Building Society launches poppy bond
10th November 2014 15:33
by Sylvia Morris from interactive investor
Banks and building societies continue to cut rates on both fixed rate bonds and easy access accounts. But some providers are coming out with top deals to replace them.
Coventry Building Society has launched a Centenary Poppy Bond paying 2.4 per cent before tax (1.92 per cent after) for savers willing to tie their money up until December 2017. The society will donate 0.15 per cent of money invested in the Poppy Bond by 31 December this year to the Royal British Legion Poppy Appeal.
The rate is among the best available for those looking to tie their money up for around this period. Only Shawbrook Bank and State Bank of India UK pay a slightly higher 2.5 per cent (2 per cent).
Kent Reliance has raised the rate on its one-year fixed rate bond for new savers to 1.9 per cent (1.52 per cent), making it the best deal for fixed rates. Its two-year rate is also among the top deals at 2.2 per cent (1.76 per cent), along with State Bank of India UK at 2.25 per cent (1.8 per cent).
On easy access accounts, BM Savings has cut the rate to new savers on its Online Extra to 1.35 per cent (1.08 per cent), down from 1.6 per cent (1.28 per cent). But Saga has a new account, Internet Saver, open to those aged 50 or over. At 1.55 per cent (1.24 per cent) it is a top-paying easy access account.
On tax-free cash Isas, BM Savings rate for new savers has been cut from 1.6 per cent to 1.55 per cent including a bonus for the first 12 months. National Savings & Investments pays 1.5 per cent with no bonus, but you cannot transfer your existing cash Isas into this account.
The top deal for transfers but with no bonus comes from Sainsbury's Bank at 1.45 per cent on £500 plus, or 1.49 per cent on £30,000 or more with Barclays Instant Isa issue 1.
On fixed-rate cash Isas, best rates includes 1.7 per cent with Post Office for one year, and 2.1 per cent for two years or 2.25 per cent for three years, both from Virgin Money. Coventry Building Society pays 2.6 per cent fixed until 30 November 2018.
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
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