A good rainy day fund? Coventry BS is launching a new easy access savings rate – but there’s one catch
- New Four Access Saver (Online) (2) offers a market leading rate of 4.50%
- The account offers four free withdrawals per year
- Savers can open the account online with £1 and save up to £250,000
Coventry Building Society has launched a new best buy easy-access savings rate that pays out 4.5 per cent.
Available to both new and existing savers, the Four Access Saver can be accessed online with just £1.
After that, savers can deposit up to £250,000, but as with most savings accounts only up to £85,000 is protected by the Financial Services Compensation Scheme.
Online benefits: Coventry’s deal, which is available to both new and existing savers, can be accessed online with just £1
Someone putting £10,000 in this account could earn £450 in interest over the course of a year, if interest rates stay the same.
The account has one big catch, however, which can deter depositors who want to regularly move in and out of their savings.
It only allows four withdrawals per 12 months, from the day the account is opened. Any additional withdrawals are subject to a fee equal to 50 days interest.
> View the best low-threshold savings rates here
Savers can choose from annual or monthly interest, which can be added to the account or deposited into their linked bank account.
Daniel McDonald, senior savings product manager at Coventry Building Society, said: ‘We expect our new Four Access Saver account to be popular with savers who want to benefit from a market leading rate while still having access to their money when they need it Unpleasant.
“The account is ideal for people who are looking for a place to put their savings or save for something specific, but don’t want to lock up their money and can withdraw their savings up to four times a year without attack.”
How does it compare?
In terms of the market average, the Coventry deal is head and shoulders above the rest. According to Moneyfacts, the average easily accessible rate is 2.58 percent.
However, there are some deals that come close to the Coventry Building Society rate.
The next best deal on the market is offered by Principality Building Society. His Double Access account pays 4.45 percent.
However, as the name suggests, a maximum of two withdrawals per year are possible.
The next highest paying deal that allows unlimited access is offered by Shawbrook Bank, which pays 4.35 percent.
Savers can apply online and open the account with just £1,000. Someone who deposits £10,000 into the account can earn £435 in interest over the course of a year.