Coventry BS launches new issue of 3.05% saver

3 June 2011

Coventry Building Society has launched another issue of its popular eNotice online savings account.

The account pays 3.05% interest and is currently top of the best-buy tables. Its nearest rival notice account, the Northern Rock Rainy Day Saver, pays 2.9%.

After a year, the rate drops to 2.55% but the 0.5% bonus is much less than some of the other best buy accounts, such as 1.5% from Northern Rock and 1% from Principality's notice account.

There is also no limit on withdrawals from the eNotice account but customers will need to give 30 days' notice to access their money without incurring a penalty, compared to 120 days for Northern Rock's offering.


The competitive terms of the online saver mean despite being a notice account, eNotice stacks up well against easy access best-buy Nationwide MySave Online Plus, says Andrew Hagger, spokesperson for Moneynet.

"Out of the two, I prefer the Coventry eNotice account – not only because of the lower bonus element, but also because the withdrawal penalties are less harsh," he says.

"With Coventry, if you don't give 30 days' notice, you lose 30 days' interest on the amount withdrawn – whereas with the Nationwide account after the one free withdrawal, your rate drops to 0.1% and you don't get the bonus on the whole balance in any month you make a further withdrawal."

Although as a rule notice accounts are less flexible than easy access accounts, Hagger believes that the 30-day notice period allows for minimal disruption: "If you have an emergency you need to pay for, you can use the credit card and at the same time give notice on the savings account so you can repay the credit card bill when it comes in without losing any interest."


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