Finance: Expert discusses impact of inflation on a savings account
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Coventry Building Society has a strong following of savers who deposit their money with the provider. An account of particular interest in recent months has been the Regular Saver, offering a 1.05 percent interest rate – an enticing offer in the current climate. However, the provider has recently announced a new offering which may capture savers’ attention.
It has launched what it is calling the ‘Loyalty 21 Day Notice Saver’, in a new option for its customers.
The account is currently offering a 0.65 percent AER/gross interest rate per year.
This is available on balances up to £20,000 in a sole account, or £40,000 for joint accounts with the provider.
Interest is paid out annually on the anniversary of the opening of the account, or monthly at the end of the last day of the month.
The Loyalty Notice Saver is a 21 day notice account, which means Britons will have to let the provider know in advance if they wish to draw out money.
If they do not, then they could face a charge for withdrawal without notice.
This charge is equal to 21 calendar days’ interest on the amount which is withdrawn.
The account is being described by Coventry Building Society as “highly competitive” and it is also limited issue, so savers will want to act fast if they wish to secure the deal.
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However, it will be important to note the eligibility for this account, and who can open it.
Most importantly, to be eligible, individuals must be an existing customer with CBS.
The provider explains: “This account is only available for members who have been with us continuously since January 1, 2020 or before.”
There are also other key criteria a person will need to understand before applying for this account.
The first is that the account is restricted to customers who are over the age of 16.
They must also be a UK resident, as CBS cannot offer accounts to people outside of the UK.
Next on the application checklist is bank or building society details which a person may need to send withdrawals and interest to.
Finally, if someone is tax resident in another country, or a US citizen, they will need a Tax Identification Number, or TIN.
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This account can be opened and managed in a variety of ways, to suit the needs of a variety of savers.
Perhaps most easily, savers can open this account online via the Coventry Building Society website.
Individuals can also open this account in branch, by post, or by phoning CBS.
For account openings in branch, individuals will need to ask for a passbook to keep track of transactions.
The minimum balance on this account is £1, making it extremely suitable for those who are just getting started on a savings journey.
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