Coventry Increase Rate & Guarantee

Oblivion

The first year of my Coventry Building Society 50 Plus eSave Account with its fixed first year interest rate is due to come to an end shortly, and I've been wondering whether to contact them to try and negotiate an extension.

They must have read my mind, because this morning I received an email from them extending and improving the terms, albeit that it is now on a variable rate that could go down. For the time being though, it is excellent news ...



[SIZE=+1]Great news about your 50 Plus eSave account[/SIZE]
As a 50 Plus eSave customer you've earned an excellent return on your savings account since you opened it nearly 12 months ago. We know from customer feedback that a highly competitive rate from a building society you can trust, together with easy access, has proved very popular and so we want to ensure that your eSave account continues to offer you exceptional value.
On its first anniversary, the interest rate on your 50 Plus eSave account was due to become variable, with the guarantee that for the next six months the Annual Equivalent Rate (AER) would at least equal the Bank of England Base Rate, which is currently 5.00%.
But now, we are delighted to inform you that we are able to offer you an even higher rate than we originally promised and we have also been able to considerably improve on our original rate guarantee.
[SIZE=+1]6.25% AER (variable) for your second year[/SIZE]
From your first anniversary of investment, the new rate on your account will be 6.25% AER/gross p.a. (variable) which is a full 1.25% above your original guarantee and the Bank of England Base Rate. This includes a 0.50% AER bonus paid for the second year your account is open. In addition we guarantee that the AER will be at least 0.25% above Bank of England Base Rate up to and including 31.03.2010. For customers receiving monthly interest the new rate, including the 0.50% AER second year bonus, will be 6.25% AER, 6.08% gross p.a. (variable). And we guarantee that your AER will also be at least 0.25% above Bank of England Base Rate up to and including 31.03.2010.

Dave.

Milarky

My mum got her '60+ esaver' rate continued - but with a better guarantee than that

6.40 fixed ended 30.06.08
then
6.25 (fixed) until 31.03.09

A fixed rate is better than that complicated variable they're offering you.

0.50% 'bonus' plus 0.25% 'guaranteee' means your rate is already 0.50% above what it has to be be. If the BOE rate drops they could drop it. It the BOE rate doesn't drop it, they could drop it, and even if the BOE rate goes up 0.25% they can still drop the rate!

Up with that much uncertainty I need not put!

(Why not open an EGG savings account @ 6.3% fixed for 12 months before it is pulled? No monthly interest is the only drawback with their offer)

Oblivion

Milarky wrote: »

My mum got her '60+ esaver' rate continued - but with a better guarantee than that

6.40 fixed ended 30.06.08
then
6.25 (fixed) until 31.03.09

A fixed rate is better than that complicated variable they're offering you.

0.50% 'bonus' plus 0.25% 'guaranteee' means your rate is already 0.50% above what it has to be be. If the BOE rate drops they could drop it. It the BOE rate doesn't drop it, they could drop it, and even if the BOE rate goes up 0.25% they can still drop the rate!

Up with that much uncertainty I need not put!

(Why not open an EGG savings account @ 6.3% fixed for 12 months before it is pulled? No monthly interest is the only drawback with their offer)

I agree it could have been better, but for now, it's enough for me to keep my money in. Obviously I can move it whenever I wish if the rate does plummet. During these troubled times I like the comfort factor of what I perceive to be a safer institution, rather than chasing every last morsel of interest

Dave.

Stompa

Not a bad rate, just a shame they left it so late before telling me.