Coventry Building Society launches poppy bond

12 November 2014

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% before tax (1.92% after) for savers willing to tie their money up until December 2017. The society will donate 0.15% 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% (2%).

Kent Reliance has raised the rate on its one-year fixed rate bond for new savers to 1.9% (1.52%), making it the best deal for fixed rates. Its two-year rate is also among the top deals at 2.2% (1.76%), along with State Bank of India UK at 2.25% (1.8%).

On easy-access accounts, BM Savings has cut the rate to new savers on its Online Extra to 1.35% (1.08%), down from 1.6% (1.28%). But Saga has a new account, Internet Saver, open to those aged 50 or over. At 1.55% (1.24%) it is a top-paying easy access account.

Find the best Cash Isa or savings account for you

Cash Isas

On tax-free cash Isas, BM Savings rate for new savers has been cut from 1.6% to 1.55% including a bonus for the first 12 months. National Savings & Investments pays 1.5% 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% on £500 plus, or 1.49% on £30,000 or more with Barclays Instant Isa issue 1.

On fixed-rate cash Isas, best rates includes 1.7% with Post Office for one year, and 2.1% for two years or 2.25% for three years, both from Virgin Money. Coventry Building Society pays 2.6% fixed until 30 November 2018.

This article was written for our sister website Money Observer

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