coventry building society 5.8% fixed rate

malky39

i am in the process of opening 0ne of these accounts but with the recent interest rate rise i am in two minds whether to wait and see if any other places offer better. What are peoples views? i think i would be safe going on the fact that the BOE normally rise the rate by 0.25% and i cant see them rising it more than 3 times in a year. or will they

ReportInvestor

I opened one of these last week with all of my family's available savings (£35k) in the certain knowledge that interest rates would rise today.

The next best was 5.6% - but don't expect that to go up to 5.85% because of one interest rate rise.

What about instant access? You can get 5.45% with IceSave from 15 November.

But that still allows the BofE to raise rates once (and possibly twice or thrice) before IceSave will beat the Coventry Bond over the period to Jansuary 2008.

richgirl

The fixed rates follow the money market rates, the boe base rate usually lags the money markets, which basically means this rate rise has already been priced in.

What you need to look at is the prospects for future rises in the economic stats, i.e. growth and inflation.

ReportInvestor

How much of the Coventry's reserves is this new Coventry Chief Executive prepared to burn up with a combination of this 5.8% fixed rate account and the Coventry First account which is a top payer linked to the base rate no matter what that does over the next year :eek:.

It's all very well trying to make your mark, but do questions need to be asked at the 2007 AGM by existing members? Are existing members' reserves being squandered in pursuit of executive bonuses linked to growth rates?

In the meantime, MSErs should take advantage of both of these fantastic offers since they have no axe to grind.