Coventry BS launches 3.25% Poppy Bond

26 October 2012

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.

Disappearing rates

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

Add new comment