Coventry Building Society - Poppy Bond

armybike

Not sure if people are aware of this -

"Coventry Building Society has teamed up with The Royal British Legion's Poppy Appeal to bring you a great way of earning interest on your savings, while at the same time helping current and former members of Britain's Armed Forces and their dependants. The Royal British Legion's Poppy Appeal funds an invaluable financial, social and emotional support service, to help hundreds of thousands of current and ex-Service men and women, as well as their dependants. And when you consider that there are currently over 10.5 million people who are eligible for support and who may need this kind of help, then you can see just how important your investment in the Poppy Bond could be.

Help us to help the Poppy Appeal

When you open your Poppy Bond not only will you receive a highly competitive rate of 6.25% AER/gross p.a. fixed until 31 December 2009, but you'll also be helping us to support the 2008 Poppy Appeal.

The Coventry will make a donation equal to 0.25% of the balances invested direct to the Poppy Appeal. This donation is in addition to the interest you'll earn. So, for example, if you invest £20,000, we'll make a donation of £50.
With your Poppy Bond, you'll receive an excellent rate on your savings with the Coventry, and at the same time you'll be helping us to make a valuable contribution to a very worthy cause.

• We'll make a donation equal to 0.25% of the total balances invested to the Poppy Appeal.
• Invest between £500 and £250,000 in your Poppy Bond.
• The interest rate on your Poppy Bond is fixed until 31.12.2009.
• Emergency withdrawals available subject to a penalty of 90 days interest.
• Monthly interest option available.
• You can manage your Poppy Bond online or by telephone.

This is a joint fundraising project between The Royal British Legion (Charity number 219279) and Coventry Building Society. Coventry Building Society will make a donation to Royal British Legion Trading Ltd. equal to 0.25% of the balances invested in the Poppy Bond based on balances held one month after the product is withdrawn from sale. *AER stands for annual equivalent rate and illustrates what the interest rate would be if interest was paid and added each year. The gross rate is the interest rate payable before the deduction of tax."

For more details -
http://www.coventrybuildingsociety.co.uk/savings/poppybond.aspx

armybike

moneywise.co.uk have said that the Poppy Bond is the "Deal Of The Week" -

"Affinity saving accounts rarely offer competitive rates, but a new fixed-rate bond from the Coventry in association with The Poppy Appeal aims to help you save and gives to charity at the same time. The building society’s Poppy Bond pays you 6.25% AER until 31 December 2009 on a minimum deposit of £500. Coventry will also make a donation to The Royal British Legion’s Poppy Appeal equal to 0.25% of all funds in the bond.
Rachel Haworth, head of marketing at the Coventry, says it expects to donate hundreds of thousands of pounds to the charity early next year, thanks to savers opening a Poppy Bond. The Royal British Legion provides financial, social and emotional support to former and current members of the Armed Forces, as well as their dependents.
The Poppy Bond allows you to save between £500 and £250,000, with annual interest either added to your balance or paid away. You can also elect to earn monthly interest, but bear in mind that this must be paid into a separate account and will result in your actual interest rate falling slightly to 6.08%.
Haworth says: “Affinity accounts provide an excellent way for people to give money to causes close to their heart. Now more than ever, it is important for people to make the most of their savings, but for those people who also want to support a worthy cause, the Poppy Bond is the best of both worlds.”
The account can be opened from 31 October online or in one of the Coventry’s 48 branches. Although the account is fixed, emergency access is allowed without notice subject to 90 days loss of interest.
Kevin Mountford, head of banking at moneysupermarket.com, says the Poppy Bond strikes the right balance between providing a competitive rate with a good cause.
“Fixed savings rates are starting to fall and anyone thinking about locking in for a while until the market settles down might want to consider this deal," he adds.

How does it compare?
There are no other fixed-rate bonds linked to charities available at the moment, but even compared to traditional fixed-rate deals, the Poppy Bond stacks fairly up well.

Following the fall of Icelandic-owned saving banks Icesave, Heritable and Kaupthing Edge, all of which were well-known for their competitive fixed-rate deals, the choice on the market for people who want the security of a fixed rate has dried up slightly.
ICICI Bank’s HiSAVE 12-month fixed deal has been one of the best on the market for some time, but is due to be withdrawn this week.
That puts Anglo Irish Bank out in front in terms of rate. It offers two top fixed-rate deals; the first is fixed for 12 months and pays 7.05% AER, while the second is fixed for nine months and pays a slightly higher AER of 7.06%. You’ll need at least £500 to put away to qualify for both of these accounts.
Anglo Irish Bank allows post and telephone access, and the interest you earn will be added to your account on the first anniversary. However, bear in mind that no additional deposits are allowed after opening your bond, and no withdrawals are permitted from the nine-month deal.
The 12-month deal allows early withdrawals in the case of emergency but this will result in a loss of interest.
One key benefit of Anglo Irish Bank is that it is covered by the Irish government’s guarantee to protect 100% of savers’ money.
Another leading fixed-rate account currently on the market is from Birmingham Midshires, part of the HBOS group. Its six-month account pays 6.97% AER on deposits from £1. However, because this account pays interest on a monthly basis, rather than an annual one, you will only receive 6.76% net interest.
Withdrawals and additional deposits are not permitted.
SAGA also offers a six-month account again for deposits of £1. The AER on this deal is 7.02% but you can also opt for monthly interest (6.80%), which will be paid into a nominated bank account. Like many fixed-rate accounts, no withdrawals or additional deposits are allowed during the term.
SAGA also offers a one-year fixed-rate account paying 6.85% AER."

http://www.moneywise.co.uk/news-views/2008/10/29/good-savings-deal-you-and-charity