Coventry Building society & Family allowance 7.25%

Fairwinds

Has anybody worked out whether this is worth bothering about?

From money supermarket:
This is one occasion where you will welcome being sent to Coventry. Uniquely Coventry Building Society has launched an amazingly good savings account called Family 1st with a stonkingly good rate of 7.25% - a massive 2.5% points above the base rate - fixed for the first year and then 6.25% fixed for the second year. In the third year the rate becomes variable though there is a guarantee that it will be at least as high as the Bank of England base rate.

As you'd expect, where there are kids there are rules. This rate is only available on Child Benefit money paid in directly to the account from the Inland Revenue and if the benefit isn't paid for two consecutive months you lose it (the rate that is, not the money).

There is also a linked savings account for the kids' other savings offering a respectable 5.25% variable. However, in the first year there is a guaranteed bonus of 0.5% and for the first 18 months Coventry promises the rate will at least equal the Bank base rate.

Also the money is not tied up. You are free to make withdrawals online, by phone, at a branch or by cash card.

And a link: http://www.coventrybuildingsociety.co.uk/homepage.htm?CBSRef=020603

loracan1

I've applied for this, very good interest rate and easily accessible. Got the paperwork this morning and now need my certified id sorting out.

TraceyD_4

Have received my paperwork this morning but can't understand why they need your bankdetails to transfer money to when you can withdraw funds via ATM. Rang them and they said it was for any money transfers and telephone banking. Told them that would only be with withdrawing via ATM and they said it is mandatory. Not keen on giving them the details cos then they know more about me than they need to?! Or am I being paranoid?!

toozie_2

I thought most financial bodies would need bank details before formally authorising the opening of the savings/loan account, to enable the company to do a proper credit search on the individule.

TraceyD_4

When I spoke to them, they said it was just for transfer purposes and would not be credit checked - although thought the same as you did that they would be checking! Have sent the form in anyway now as only receiving 3.5% on my current saving account!

Debt_Free_Chick

It may be part of the Money Laundering Regulations. They want you to link a specific account to the Coventry one, to stop you transferring money to Columbian Drug Barons - who presumably, have a different account to yours

Check the T&Cs again - can you only transfer money out of this account to a specific/nominated account?

TraceyD_4

You can withdraw money at the ATM but only receive money through the nominated account at the time of opening the saver account. But think youre right that it probably to do with money laundering laws etc etc

Kallisti

I'm not worried about the strange hoops they've put in place. I've not asked for an ATM card so any money I remove will just go into my main account. However, I was wondering if anyone thought of opening this account in their kids names? Seems ideal as it'll be a while before it's earning the £100 interest at which you should be paying tax?

I'm not clear on it, but it does seem as if the account has to be opened by the person receiving the benefit (eg, the parent), has anyone tried it in their kids name?

katskorner

Is this account still a best buy? I am trying to find an account to move my son's A&L first saver to as they have now dropped the rates and I was considering this. I would appreciate some feedback.

Thanks.

TraceyD_4

Have opened the account in my name but interest rate still good. Account simple to manage - once you get over getting two ATM cards and two pin numbers and have to find out which goes with which card!

deemy2004

Opened one in wifes name at the branch - very efficient.

Sent off the form to the inland revenue to get the child benefit paid into the account

Also get 5.25% fixed for 1 year (depending on drop in interest rates)

Can do online transfers and they give 2 cardcash ATM cards for withdrawls.

Seems like a good deal ! given the rates have alreayd dropped quite a bit nudginhg below 5%