Coventry Building Society increases interest rates across saving accounts

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Coventry Building Society has confirmed that it will be increasing the interest rate on its savings accounts by up to 0.25 percent on its savings accounts. This move from the financial institution is set to benefit 99 percent of its members’ variable savings from April 4, 2023.

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When this rate hike is implemented, first home savers, regular savers and the Junior ISA account will continue to receive the highest pay rates.

Notably, the Limited Access ISA (Online 4) will be raised by 0.25 percent to offer a “market leading” rate of 3.25 percent.

Furthermore, Coventry Building Society’s First Home Saver (2) and Regular Saver (5) accounts will be awarded a rate increase of 0.15 percent to 4.15 percent.

The building society’s children’s accounts will pay a minimum interest rate of 3.35 percent after this hike.

ISA explained

With this, Coventry’Junior ISA will pay the highest rate on the market at 4.15 percent with accounts being available to open for as little as £1.

After today’s base rate hike, the building society confirmed it remains committed to offering competitive rates with all savings offering at least two percent.

Prior to today’s announcement, Coventry had already raised interest rates on its online Limited Access Saver (Online) (8) account to 3.25 percent.

Earlier today, the Bank of England made the decision to increase the base rate from four percent to 4.25 percent.

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This represents the 11th hike to the base rate in a row from the central bank as it attempts to get a handle on inflation.

Earlier this week, the CPI inflation rate for the 12 months to February 2023 rose to 10.4 percent.

This surprised City analysts who had forecast CPI inflation would dip below 10 percent following three consecutive months of drops prior.

With inflation remaining in double digits, further interest rate hikes are no longer out of the question.

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Ian Biggs, head of product performance at Coventry Building Society, outlined why the financial institution is opting to boost returns for savers during this turbulent economic period.

He explained: “This will be the tenth time we’re increasing our variable savings rates since the start of last year.

“We continually review all our savings range having already increased the rate on our online Limited Access Saver earlier this week.

“And from early next month, we’ll be offering rate increases to 99 percent of variable balances which will be a welcome boost for new savers and those that have been with us a long time.”

The savings expert highlighted the way in which the building society is encouraging people to make the most out of their ISA allowances.

Mr Biggs added: “With less than two weeks to go before the end of the tax year, we’re also offering limited access ISA online and Junior ISA savers market leading rates for those wanting to earn interest that’s tax-free and doesn’t count towards Personal Savings Allowances.

“Our aim is to always offer savers great value both now and in the future.”

Savers have until April 5, 2023 to use the entirety of their £20,000 ISA allowance before the end of the tax year.