Coventry Members Bond - 6% for 2 years

Coventry Building Society have launched a new bond. It is only available to those who have been members for at least 5 years. It seems to be a carbon copy of the members bond which Nationwide were offering a few weeks ago.

It pays 6% gross until maturity on 30/9/06. The useful feature this (and the Nationwide bond) offers is that you can close the account without penalty as long as you give them 90 days notice. So if instant access rates look like they are starting to head over 6% then you aren't locked into an uncompetitve rate for long. Maximum balance is only £5,000 (or £10,000 for joint accounts).

(There is also a 2 year bond for non-5 year members. This pays 5.86%, but withdrawals are subject to a 90 days loss of interest.)

Replies

  • EDED Forumite
    617 Posts
    Many thanks to MJSW for this helpful thread, enabling a member of my family to invest £5,000 (the max allowed) in the Coventry Building Society bond exclusive to members of 5 years+.

    6.00% gross fixed rate is certainly way better than the 4.60% currently offered by Coventry for their online a/c NetSave. (Um, currently 0.70% behind Leeds & Holbeck's online a/c, and 0.90% behind Cahoot – for those customers able to log-in successfully…)

    Coventry's NetSave Easy Access a/c seems unattractive offering as it does only 4.00% gross on any sum withdrawn prior to 30 June 2005. It's also hampered by a minimum balance requirement of £2,000 to achieve the 5.40% gross offered for funds tied-up till 10 months hence. Anyone here opened one?

    With the membership bond, however, Coventry get Brownie points from us re the rule allowing penalty-free withdrawal via 90-days notice.
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