Coventry BS launches 3.25% Poppy Bond
Coventry Building Society has launched a new Poppy Bond paying 3.25% before tax (2.6% after tax) fixed for just over two years. It is among the top paying bonds over this period.
The society will donate 0.05% of money invested in the Poppy Bond to the Royal British Legion Poppy Appeal.
The society has so far raised £7 million for the appeal with previous bonds and easy access accounts.
The minimum investment in the new bond is £1 and the rate is fixed until 31 December 2014.
The top one-year bond comes from State Bank of India (UK) at 3% (2.4%) and M&S Money at 2.95% (2.36%).
On easy access accounts NatWest is paying a top 2.85% (2.28%) on its e-savings account to savers who open an account now. The rate includes a 1.81 (1.45) percentage point bonus for the first year on savings of £1 or more.
The new rate is a welcome break in a week where top easy access accounts are disappearing.
AA has closed its Internet Extra 4 at 2.8% (2.24%) and now pays just 1.8% (1.44%) including a first-year bonus for the first year on balances up to £25,000 to new savers. Derbyshire Building Society has cut the rate on its NetSaver to new savers from 2.75% (2.2%) to 2.5% (2%).
On cash ISAs the top easy access rate comes from Post Office at 3.01% tax-free or 3% with Cheshire Building Society. Both rates include a bonus payable for the first year but you can't transfer your cash ISAs with other providers into the Cheshire account.
Top fixed-rate cash ISAs include Saga at 3% and M&S Money at 2.95% fixed for a year, while Nottingham Building Society pays 3.2% for two years.
This article was written for our sister website Money Observer
This is a mutual organisation owned by its members and not by shareholders. These societies offer a range of financial services but have historically concentrated on taking deposits from savers and lending the money to borrowers as mortgages, hence the name. In the mid-1990s many societies “demutualised” and became banks. One academic study (Heffernan, 2003) found demutualised societies’ pricing on deposits and mortgages was more favourable to shareholders than to customers, with the remaining mutual building societies offering consistently better rates. In 1900, there were 2,286 building societies in the UK; in 2011, there are just 51.