Savings alert: Coventry Building Society increases ‘competitive’ interest rate to 3.30% | Personal Finance | Finance

This follows a recent wave of interest rate hikes from the financial institution to the benefit of its savings customers. The increase will be added to Coventry Building Society’s Limited Access Saver account.

Savers will be able to benefit from the latest interest rate rise from the building society as of today.

From March 29, 2023, the Limited Access Saver (Online) (8) will now pay customers a rate of 3.30 percent.

Both new and existing customers with Coventry Building Society will be able to access this account.

It should be noted that the Limited Access Saver offers six withdrawals each year based on the day the account is opened.

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Any further withdrawals from the product will be subject to a penalty equal to 50 days worth of interest.

All new applications for the savings account must be completed online via the Coventry Building Society website.

Accounts can be opened with a starting balance of as little as £1 which is useful for those just starting savings.

Customers can choose from annual or monthly interest, which can be added to the account or paid away.

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Daniel McDonald, senior product manager at Coventry Building Society, outlined why the financial institution is choosing to boost rates

He explained: “We continually review our savings range having already increased the rate on our online Limited Access Saver last week.

“We aim to always offer competitive rates of interest so that’s why we’ve increased the rate on this popular account again today, which will benefit those looking for the market’s top rate on a flexible account.

“The increase to 3.30 percent will be applied automatically to the account benefiting both existing and new members with a boost in a rate today.”

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She explained: “As inflation creeps higher, leaving interest rates and also stock market returns lagging, savers and investors, including people paying into their pensions, might begin to wonder whether they will ever get ahead.

“While it is true that higher interest rates should, in theory, bring down inflation, that hasn’t started to happen yet.

“Until it does, it’s hard even for those who theoretically benefit to feel pleased. But the good news is that the Office for Budget Responsibility (OBR) has forecast inflation will fall to 2.9 percent by the end of this year.

“At that point, if interest rates remain roughly where they are now, cash savings will look more rewarding for those seeking a secure and accessible place to store their money and a more stable stock market environment should be good news for pension investors, too.”