Coventry Building Society launches best buy easy-access Isa
Coventry Building Society is launching its best buy, easy-to-access Isa
- New Cash Isa pays 4.9% on deposits of £1 or more
- A maximum of four withdrawals are permitted per 12 months from opening
Coventry Building Society has launched a best buy ‘easy-access’ cash Isa for new and existing customers paying a rate of 4.9 per cent.
Savers can open the tax-free account from £1 and deposit up to £20,000 for the current tax year.
The account allows four withdrawals per 12 months from the day the account is opened. Any withdrawals after this will be charged a fee equal to 50 days’ interest.
Savers can choose from annual or monthly interest, which can be added to the account or paid into a nominated account.
Top deal: Coventry Building Society’s easy-to-access cash Isa beats the rest and pays 4.9%
The account can only be opened and managed online and accepts transfers from other Isas.
There has been a lot of activity at the top of the easy-to-access Isa money tables in recent days.
Leeds Building Society raised the interest rate on its easy-access cash Isa to 4.8 per cent on Thursday, ahead of the Bank of England’s decision to pause the base rate.
Now all eyes will be on easy access Isa rates to see if they rise to 5 per cent and overtake the non-tax-free easy access accounts – currently savers can get a top 5.1 per cent on easy access accounts. without the duty-free wrap with Leeds.
Cash Isas saw record inflows of more than £3 million in July, the Bank of England’s Money and Credit report showed last month.
The sharp rise in savings interest rates has left many savers facing the prospect of exceeding their annual Personal Savings Allowance and being taxed on their interest income.
That’s why more and more savers have been moving their money back into tax-free Isas to keep tax liabilities to a minimum.
The PSA allows basic rate taxpayers to take home up to £1,000 of savings interest tax-free each year (£500 for higher rate taxpayers).
Read more here: Will you receive a tax bill on your savings if interest rates rise?
Bethany Cozens of Coventry Building Society said: ‘The tax bills that many savers are now facing have encouraged the uptake of Isas.
‘We have opened almost as many new Isas so far this year as we have in the last two years combined, as Isas have become an increasingly popular option for members looking to maximize their tax-free savings in a higher interest rate environment.’