Coventry Building Society FR Bonds

dealsearcher

I think the t's & c's are not entirely clear. They state that closure of the account is treated as a withdrawal and a withdrawal is penalised with 90 days loss of interest. The conditions state that at maturity the bond is automatically reinvested unless you tell them otherwise and that closure is treated as a withdrawal. You have to act to stop the reinvestment and, although the bond should be available at maturity, you have to close the account to access it and therefore 'withdraw' the money, with the resulting penalty. Or is that what they mean? The first part of clause 8. could be read differently.

Bernard_Coleslaw

I''ve used the Cov before and always found their bonds very straightforward. I think you're reading something into the T's and C's that is not intended.

Once the bond has matured, withdrawals or closures are penalty-free. The penalty only applies if you try to close or withdraw whilst the bond is mid-term. Cov normally gives you a penalty-free withdrawal 'window' for the month following maturity, too, even if you've reinvested, so you have time to move funds around if you want.

Hope this helps.

dealsearcher

Thanks for that Bernard. I missed the interpetation placed on the t's & c's by Geoffrey but could see the possibility when he pointed it out. Opening up a First account to transfer on maturity would not be a problem for me but to have to do it would annoy me.