Coventry Building Society has announced the launch of a new savings account with a favourable interest rate of seven percent.
This is an exclusive offering for the financial institution’s loyal members and can be opened by customers who have been with the society since January 1, 2022.
Thanks to the new Loyalty Regular Saver account, customers can benefit from a competitive rate of seven percent and deposit up to £250 a month.
This means a maximum amount of £3,000 can be saved within a 12-month period and if the maximum £250 is saved each month, after a year, the total interest earned would be £113.87.
It should be noted that this calculation is based on if the interest rate remains at seven percent throughout the year and no money is taken out.
The latest product from Coventry Building Society is part of its wider reward package for customers.
Members have received £163million in extra value in the first six months of 2023 from savings rates that are higher than the market average for both new and closed accounts.
In recent years, savings interest rates have been on the rise due to the Bank of England increasing the base rate.
However, with the central bank pausing its series of rate hikes, there is concern that savers will no longer benefit from high interest rates in the near future.
Jonathan Wilson, a senior savings propositions manager at Coventry Building Society, broke down why customers should take advantage of this deal as soon as possible.
He explained: “As a member-owned organisation, we don’t have shareholders to pay.
“And our loyalty accounts offering exclusive rates to our two million members are a way of rewarding those who choose to keep saving with us.
“We think our new Loyalty Regular Saver will be popular with our long-standing members as it offers great value for those wanting to get into a savings habit.
“And we’ve tried to be as flexible as we can to cater for our members who want to build up their savings in different ways.
“Some may want to save every week, for others it may be once a month, and some might want to take a break from saving from time to time.
“We’ve kept the minimum balance at just £1 and there’s no limit on the number of times savers can put money in over the year, as long as it doesn’t exceed £250 in a month.”
